PayPal Holdings, Inc. (PYPL) Securities Class Action

The litigation focuses on the propriety of PayPal’s statements about the growth trajectory for its core Branded Checkout segment.

The complaint alleges that the company made repeated assurances of sustained growth in Branded Checkout and the success of its initiatives to drive that growth as well as its competitive strengths domestically and abroad.

The complaint contends that PayPal and its management misled investors by creating the false impression that the company’s revenue and growth outlook were reliable and by minimizing the risks of seasonality and macroeconomic fluctuations. The complaint further alleges that PayPal’s growth assurances were not achievable under the now-former CEO because, in part, they required an unrealistically stable consumer environment along with strong execution and continued competitive advantages.

Investors’ expectations were dashed on February 3, 2026. That day, PayPal announced its fourth quarter and full year 2025 financial results that included a shocking deceleration in Branded Checkout growth. The most significant red flag for investors was the Branded Checkout total payment volume growth of just 1%, which was sharply down from 5% growth during the third quarter.

In addition to blaming its dismal results on domestic and international macroeconomic softness and increased competitive intensity, PayPal revealed “operational and deployment issues that amplified the pressure[]” and said it would “focus on giving consumers a reason to come back.”   

PayPal also announced the abrupt replacement of its CEO.

This news drove the price of PayPal shares sharply lower on February 3 and was followed by a wave of analyst downgrades, reportedly due to a lack of visibility into growth re-acceleration.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the PYPL investigation about?

We are investigating whether PayPal may have intentionally misled investors about the success and execution of its touted growth initiatives.

WHAT SHOULD I DO?

I worked at PYPL. What should I do?

If you were an employee of PYPL, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in PYPL, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any PYPL investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.