New Securities Lawsuits Target PayPal, Apollo
The Rosen Law Firm announced a new class action lawsuit against PayPal Holdings, Inc. on behalf of stockholders. The firm also filed a suit against Apollo Global Management, adding to a recent wave of securities fraud litigation targeting major tech and finance companies.
The lawsuit against PayPal centers on allegations that the company misled investors by making overly optimistic statements about its 2027 financial targets and the growth prospects of its branded checkout business. The complaint argues that PayPal failed to disclose that its salesforce was not equipped to execute on these ambitious goals. This culminated on February 3, 2026, when PayPal announced disappointing earnings, withdrew its 2027 targets, and revealed a CEO transition, causing the stock to plummet by over 20%. The class period for this lawsuit covers investors who purchased stock between February 25, 2025, and February 2, 2026. The Apollo Global Management lawsuit alleges the company made false and misleading statements by denying business dealings with Jeffrey Epstein. The suit, covering investors from May 10, 2021, to February 21, 2026, claims that executives, including CEO Marc Rowan, had frequent communications with Epstein regarding the firm's business in the 2010s. News articles published by the Financial Times on February 1 and February 17, 2026, and a CNN report on February 21, 2026, detailed these ties, leading to significant drops in Apollo's stock price. These cases are part of a broader landscape of securities litigation targeting public companies. One emerging trend involves "AI-washing," where companies are accused of exaggerating their AI capabilities to attract investors. Lawsuits against companies like Opendoor and Upstart alleged that they made misleading statements about their AI-driven models, which failed to perform as advertised, ultimately harming investors when the truth emerged. Investors in the PayPal case have until April 20, 2026, to move the court to be appointed lead plaintiff. For the Apollo case, the deadline for lead plaintiff motions is May 1, 2026. These lead plaintiffs will represent other class members in directing the litigation.
