NEW YORK, Dec. 28, 2016 /PRNewswire/ -- Attorney
Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies
investors that a class action lawsuit has been filed against PayPal
Holdings, Inc. ("PayPal" or the "Company") (PYPL), eBay, Inc.
("eBay") (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 Vebmo 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 the 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 its
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
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SOURCE Bronstein, Gewirtz & Grossman, LLC