SAN FRANCISCO, CA / ACCESSWIRE / November 29, 2022 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP recommends thatPayPal Holdings, Inc. ("PayPal") investors who suffered more than $500,000 in losses from buying or selling PayPal stock (Nasdaq:PYPL) between February 3, 2021 and February 1, 2022 contact our securities fraud practice group attorneys immediately for details about the pending securities fraud class action against PayPal. The deadline to apply to be a lead plaintiff is December 5, 2022.
Class Period: February 3, 2021 - February 1, 2022
Lead Plaintiff Motion Deadline: December 5, 2022
Case information: https://www.lieffcabraser.com/securities/PayPal/
Contact us: Email or text [email protected] or call 1-800-541-7358
The securities class action alleges that PayPal made materially false and misleading statements and omissions about the growth in the number of its net new active accounts ("NNAs") and that the metric was an important indicator of the Company's performance. PayPal earns a fee with each payment transaction, and therefore, the more active accountholders it has, the more revenues it could generate.
PayPal failed to disclose, however, that millions of the new accounts generated through the Company's cash incentive marketing program, which increased its NNA numbers, were fraudulent accounts.
The truth was disclosed on February 1, 2022, when PayPal reported disappointing fourth quarter and full year results for 2021, and revealed that 4.5 million accounts were illegitimately created. Paypal reduced its forecast for NNAs and announced that it would focus on increasing the engagement of its active users, which would reduce its ability to maintain growth in its NNA figures. On this news, the price of PayPal common stock fell $43.23 per share, or 24.59%, from its closing price of $175.80 per share on February 1, 2022, to close at $132.57 on February 2, 2022, on unusually high trading volume.
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Lieff Cabraser Heimann & Bernstein, LLP, with over 100 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a "Plaintiffs' Powerhouse" by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $124 billion in verdicts and settlements. Lieff Cabraser is committed to ensuring access to justice for all.
SOURCE: Lieff Cabraser Heimann & Bernstein