According to the law firm press release, PayPal operates as a technology platform company that provides online payment systems through a variety of services on behalf of consumers and merchants. On February 14, 2017, PayPal announced an agreement to purchase TIO Networks Corp. (“TIO”) for $233 million (the “TIO Acquisition”). TIO is a bill-pay management company that processed roughly $7 billion in bill payments on behalf of 14 million customers in 2016. On July 18, 2017, PayPal announced the completion of the TIO Acquisition.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) TIO’s data security program was inadequate to safeguard the personally identifiable information of its users; (ii) the foregoing vulnerabilities threatened continued operation of TIO’s platform; (iii) PayPal’s revenues derived from its TIO services were thus unsustainable; (iv) consequently, PayPal had overstated the benefits of the TIO Acquisition; and (v) as a result, PayPal’s public statements were materially false and misleading at all relevant times.
On March 16, 2018, the Court issued an Order appointing interim Co-Lead Plaintiffs and Counsel. Interim Lead Plaintiffs filed an amended Complaint on June 13. Defendants filed a Motion to Dismiss the amended Complaint on July 13. On December 13, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. On January 14, 2019, Plaintiffs filed a second amended Complaint. Defendants filed a Motion to Dismiss the second amended Complaint on March 15. On September 18, the Court issued an Order granting Defendants' Motion to Dismiss and entered judgment in favor of the Defendants. Plaintiffs filed a notice appealing the Dismissal Order on September 23.