NEW YORK, Jan. 6, 2017 /PRNewswire/ -- Pomerantz LLP
announces 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 the
companies' officers. The class action, filed in United
States District Court, Northern District of California, and docketed under 16-cv-07371 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"), seeking to recover damages caused by
Defendants' violations of the federal securities laws and to pursue
remedies under Sections 10(b) and 20(a) of the Securities Exchange
Act of 1934 (the "Exchange Act"), 15 U.S.C. ยง 78 et seq., against
eBay, PayPal, and certain of their top officials.
If you are a shareholder who purchased PayPal during the Class
Period, you have until February 27,
2017 to ask the Court to appoint you as Lead Plaintiff for
the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact
Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, ext. 9980. Those who inquire by e-mail are encouraged to
include their mailing address, telephone number, and number of
shares purchased.
[Click here to join this class action]
PayPal, which was spun off from eBay in July 2015, operates as a technology platform
company that enables digital and mobile payments on behalf of
consumers and merchants worldwide. It enables businesses of
various sizes to accept payments from merchant websites, mobile
devices, and applications, as well as at offline retail locations
through a range of payment solutions. The Company's platform
allows customers to pay and get paid, transfer and withdraw funds
to their bank accounts, and hold balances in their PayPal accounts
in various currencies.
Between 2002 and 2015, PayPal operated as a subsidiary of
eBay. eBay is a multinational e-commerce company providing
consumer-to-consumer and business-to-consumer payment solutions via
the internet.
In 2013, PayPal acquired the payment service provider Braintree,
owner of the mobile payment service Venmo. Describing itself
as a "digital wallet," Venmo is a mobile payment service that
allows its users to transfer money to one another after providing
Venmo with personal and bank account information necessary to
create a user account.
On September 30, 2014, eBay
announced that it would spin off PayPal and its services, including
Venmo, into a separate publicly traded company. In
July 2015, the companies completed
the spin-off, pursuant to which each holder of eBay common stock as
of the close of business on July 8,
2015 received one share of PayPal common stock for every one
share of eBay common stock held.
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,
Defendants made false and/or misleading statements and/or failed to
disclose that: (i) PayPal's Venmo service was engaged in
unfair trade practices; (ii) the foregoing facts, when they became
known, were likely to subject the Company to increased regulatory
scrutiny and/or affect the profitability of PayPal's Venmo service;
and (iii) as a result of the foregoing, PayPal's public statements
were materially false and misleading at all relevant times.
On April 28, 2016, post-market,
PayPal disclosed receipt of a civil investigative demand on
March 28, 2016 from the Federal Trade
Commission, seeking documents related to the Company's Venmo
peer-to-peer payment service in connection with potential unfair
trade practices.
On this news, PayPal's share price fell $0.89, or 2.22%, to close at $39.18 on April 29,
2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los
Angeles, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 80 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP