NEW YORK, Feb. 23, 2017 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against PayPal Holdings, Inc. (“PayPal” or the “Company”) (Nasdaq: PYPL ), eBay, Inc. (“eBay”) (Nasdaq: EBAY ), and certain of its officers, and is on behalf of a class consisting of all persons or entities who: (1) purchased or otherwise acquired eBay securities on the open market on or after December 19, 2013 (the “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”). Such investors are advised to join this case by visiting the firm’s site: http://www.bgandg.com/pypl .
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
PayPal, spun off from eBay in July 2015, is an American technology platform company running a worldwide online payments system that enables digital and mobile payments on behalf of consumers and merchants. Between 2002 and 2015, PayPal functioned as a subsidiary of eBay. eBay is an American multinational corporation and e-commerce company offering consumer-to-consumer and business-to-consumer payment solutions online.
In 2013, PayPal acquired Braintree, a payment service provider and holder of Venmo. Defining itself as a “digital wallet,” Venmo is a mobile payment service that allows its users to transfer money to each other after setting up a personal Venmo account and linking it to users’ bank account.
On September 30, 2014, eBay publicized that it would spin off PayPal and its services, including Venmo, into a separate publicly traded company. The spin off was completed pursuant to which each holder of eBay common stock received one share of PayPal common stock for every share of eBay held at July 8, 2015’s market close.
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 its business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) PayPal’s Venmo service was involved in unfair trade practices; (2) once the above facts were made public, it was likely to impact PayPal’s profitability of its Venmo service and increase regulatory scrutiny and/or; and (3) consequently, 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 the Venmo free peer-to-peer payment service in relation with possible unfair trade practices. PayPal received a civil investigative demand on March 28 from the Federal Trade Commission (the “FTC”) for Venmo documents. The FTC review concentrates on whether PayPal, through Venmo, engaged 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.” Following this news, PayPal stock dropped $0.89 per share or 2.22% and closed at $39.18 on April 29, 2016.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: http://www.bgandg.com/pypl or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in PayPal you have until February 27, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com
