NEW YORK, Oct. 21, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, is reminding investors that class action lawsuits can be filed on behalf of shareholders of PayPal Holdings, Inc. PYPLOpendoor Technologies, Inc. OPENand Schmitt Industries, Inc. SMIT. Shareholders have until the deadlines below to petition the court to appear as lead plaintiffs. For more information on each case, see the link provided.
PayPal Holdings, Inc. PYPL
Class Period: February 3, 2021 – February 1, 2022
Lead Plaintiff Deadline: December 5, 2022
PayPal’s class action lawsuit alleges that throughout the class action period, PayPal touted the growth of its new net active accounts (“NNAs”) and directed investors to evaluate the high growth of this metric as one of the most important indicators of PayPal’s performance.
But as alleged in the PayPal class action lawsuit, PayPal failed to disclose that many of the additional users gained through its cash account creation incentive campaigns were illusory, as these incentive campaigns were easily susceptible to fraud. In particular, PayPal has not disclosed that its cash incentive campaigns significantly increased PayPal’s vulnerability to bot farms that were able to systematically exploit PayPal’s $10.00 account opening by creating millions of illegitimate accounts , which ultimately generated no future revenue for PayPal. Additionally, the PayPal class action lawsuit alleges that investors did not know how long PayPal would keep dormant customers and fake bot accounts on the platform to prevent churn and inflate its NNA guidance, which paints a more realistic picture of the true demand would have mediated for PayPal’s platform.
On February 1, 2022, PayPal announced that its NNAs for 2021 were just 49 million, down from the 50 million originally forecast in February 2021. PayPal admitted that “in connection with…
