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Case Status:    ONGOING  
—On or around 01/29/2025 (Date of last review)
Current/Last Presiding Judge:  
Hon. Robert Kirsch

Filing Date: October 04, 2022

According to the Complaint, PayPal Holdings, Inc. operates one of the best-known digital payment platforms, enabling both merchants and consumers to make digital and mobile payments worldwide. Over 90% of the Company’s revenue is generated through fees on payment transactions.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants misled investors and/or failed to disclose that: (1) Defendants had inflated its vitally important Net New Active Accounts (NNAs) metric guidance through an usually large use of marketing campaigns that were easily susceptible to fraud; i.e. the creation of millions of illegitimate accounts which were created for the sole purpose of taking advantage of cash incentives for account creation; (2) Defendants used these marketing campaigns and other incentives to hide the Company’s true churn rate and declining levels of engagement with the platform; (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and misleading and /or lacked a reasonable basis at all relevant times.

On January 11, 2023, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on March 13, 2023. Defendants filed a Motion to Dismiss the consolidated Complaint on December 11.

On January 29, 2025, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint.

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