LOS ANGELES--(BUSINESS WIRE)--Lundin Law PC, a shareholder rights firm, announces a class action lawsuit against PayPal Holdings, Inc. (“PayPal” or the “Company”) (Nasdaq: PYPL), eBay Inc. (“eBay”) (Nasdaq: EBAY), and certain of its officers concerning possible violations of federal securities laws.
Investors who (1) purchased or otherwise acquired eBay securities on the open market on or after December 19, 2013 ("eBay Class Period") and then received PayPal securities pursuant to eBay's spin-off of PayPal, effective as of July 17, 2015; and/or (2) purchased or otherwise acquired PayPal securities on the open market between July 20, 2015 and April 28, 2016, both dates inclusive (the "PayPal Class Period" and, together with the eBay Class Period, the "Class Period"), are advised to contact the firm prior to the February 27, 2017 lead plaintiff deadline.
To participate in this class action lawsuit, call Brian Lundin, Esquire, of Lundin Law PC, at 888-713-1033, or e-mail him at firstname.lastname@example.org.
No class has been certified in the above action yet. Until certification occurs, you are not represented by an attorney. You may choose to take no action and remain a passive class member.
PayPal is a technology company that offers digital and mobile payment transactions between merchants and customers. Between 2002 and 2015, PayPal was a subsidiary of eBay. eBay is an e-commerce company that offers consumer-to-consumer and business-to-consumer purchases and payments. Venmo is a mobile payment tool that allows users the opportunity to exchange payments from their bank accounts through their mobile phones.
The Complaint alleges that during the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about its business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: PayPal's Venmo service was allegedly participating in unfair trade practices; the announcement of the above allegations was likely to affect PayPal's profit on its Venmo service and/or thus, PayPal's public statements were materially false and misleading at all relevant times.
On April 28, 2016, PayPal Holdings Inc. announced that federal regulators are investigating its Venmo service regarding possible unfair trade practices after receiving a civil investigative demand on March 28 from the Federal Trade Commission (the "FTC") for Venmo documents. The FTC inquiry focuses on whether PayPal, through Venmo, participated in unfair or deceptive trade practices. The investigation "may result in substantial costs, including legal fees, fines, penalties and remediation expenses and actions and require us to change aspects of the manner in which we operate Venmo."
When this information was revealed to the investing public, the value of PayPal stock dropped $0.89 per share and closed at $39.18 on April 29, 2016, causing investors harm.
Lundin Law PC was established by Brian Lundin, a securities litigator based in Los Angeles dedicated to upholding shareholders' rights.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.