Lawsuit Deadline Set for PayPal Investors
A law firm has announced a deadline for investors who purchased PayPal stock between February 2025 and February 2026 to lead a class action lawsuit. The suit is for purchasers who experienced substantial losses during the class period.
- The lawsuit alleges that PayPal made misleadingly positive statements about its "Branded Checkout" segment's growth potential and its 2027 financial targets. - On February 3, 2026, PayPal announced disappointing fourth-quarter and full-year 2025 financial results, which led to a significant drop in its stock price. - Following the news, PayPal's stock fell approximately 20.31%, from $52.33 to $41.70 per share. - The company's fourth-quarter 2025 revenue was $8.68 billion, missing the consensus estimate of $8.80 billion, and its adjusted earnings per share of $1.23 also fell short of expectations. - In its Q4 2025 earnings report, PayPal revealed that growth in its online branded checkout offering had slowed to 1%, a significant deceleration from 5% in the third quarter. - Coinciding with the poor financial report, PayPal announced a leadership transition, with CEO Alex Chriss stepping down to be replaced by Enrique Lores, a move that surprised investors. - As a result of the disappointing performance and leadership change, PayPal withdrew its 2027 financial targets. - The deadline for investors to move the court to be appointed as lead plaintiff in the class-action lawsuit is April 20, 2026.
