According to the Complaint, PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. The Company’s services include, among others, PayPal Credit and certain debit card services. PayPal Credit is an open end (revolving) credit card account that provides a reusable credit line built into a consumer’s account with PayPal.

The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) PayPal had deficient disclosure controls and procedures; (ii) as a result, PayPal's business practices with respect to PayPal Credit remained non-compliant with applicable laws and/or regulations; (iii) PayPal's practices regarding payment of interchange rates related to its debit cards were likewise non-compliant with applicable laws and/or regulations; (iv) accordingly, PayPal's revenues derived from its PayPal Credit and debit card practices were in part the subject of improper conduct and thus unsustainable; (v) all the foregoing subjected the Company to an increased risk of regulatory investigation and enforcement; and (vi) as a result, the Company's public statements were materially false and misleading at all relevant times.

On November 2, 2021, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended Complaint on January 25, 2022. Defendants filed a Motion to Dismiss the amended Complaint on April 18. On August 8, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint.

On September 16, 2022, Lead Plaintiffs filed a second amended Complaint. Defendants filed a Motion to Dismiss the second amended Complaint on November 3. On April 27, 2023, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice.