LOS ANGELES--(BUSINESS WIRE)--Goldberg Law PC, a national shareholder rights litigation firm, announces the filing of 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. Those who (1) purchased or otherwise acquired eBay securities on the open market on or after December 19, 2013 ("eBay Class Period") and subsequently 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 encouraged to contact the firm prior to the February 27, 2017 lead plaintiff deadline.
If you are a shareholder who suffered a loss during the Class Period, we encourage you to click here or contact Michael Goldberg or Brian Schall, of Goldberg Law PC, 1999 Avenue of the Stars, Suite 1100, Los Angeles, CA 90067, at 800-977-7401, to discuss your rights free of charge. You can also reach us through the firm’s website at http://www.Goldberglawpc.com, or by email at firstname.lastname@example.org. The class in this case has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent 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 providing consumer-to-consumer and business-to-consumer purchases and payments online. Venmo is a mobile payment service that allows users the opportunity to exchange payments from their bank accounts through their mobile phones.
According to the Complaint, 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 demand 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 public, the value of PayPal stock dropped $0.89 per share and closed at $39.18 on April 29, 2016, causing investors severe harm.
Goldberg Law PC represents shareholders around the world and specializes in securities class actions and shareholder rights litigation.
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