PayPal Holdings, Inc. Class Action Lawsuit - PYPL

Company
PayPal Holdings, Inc. (NASDAQ: PYPL)
Lead Plaintiff Deadline
April 20, 2026 (Expired)
Class Period
February 25, 2025 - February 2, 2026

Expired

Lead Plaintiff Deadline

Apr 20, 2026

Join the PayPal Holdings, Inc. Class Action Lawsuit

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  • $1 - $1,000
  • $1001 - $10,000
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  • $25,001 - $50,000
  • $50,001 - $100,000
  • $100,001 - $250,000
  • $250,001 - $500,000
  • $500,000+

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Certification of Plaintiff Pursuant to Federal Securities Laws

I, duly certify and say, as to the claims asserted under the federal securities laws, that:

1.I have reviewed a complaint filed in the action.

2.I did not purchase the security that is the subject of this action at the direction of plaintiff's counsel or in order to participate in this action.

3.I am willing to serve as a representative party on behalf of the class, including providing testimony at deposition and trial, if necessary.

4.My transaction(s) in which are the subject of this litigation during the class period set forth in the complaint are set forth in the chart attached hereto.

5.Within the last 3 years,

6.I will not accept any payment for serving as a representative party on behalf of the class beyond the Plaintiff's pro rata share of any recovery, except as ordered or approved by the court, including any award for reasonable costs and expenses (including lost wages) directly relating to the representation of the class.

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Signed pursuant to California Civil Code Section 1633.1, et seq. - and the Uniform Electronic Transactions Act as adopted by the various states and territories of the United States.

By your signature above, you confirm that have retained Levi & Korsinsky, LLP to represent you and the shareholder class as a lead plaintiff in the pending class action against PayPal Holdings, Inc. This representation will be on a contingency basis, meaning that Levi & Korsinsky will advance all expenses in the litigation and will only seek compensation and/or reimbursement of expenses if the firm obtains a recovery. Regardless of the result, we will never ask you to directly pay for any attorneys’ fees, expenses, or costs. Should we obtain a favorable result, we may ask the court to award us compensation and reimbursement of expenses to be paid by the defendants or as a portion of any class recovery. In exchange for our representation, you agree to cooperate as our client by providing, for example, relevant documents and deposition testimony, if necessary. During the course of this litigation, we may employ and/or work with other law firms, experts, and third-parties to successfully prosecute this action. If you are not appointed as the lead plaintiff or Levi & Korsinsky is not appointed as lead counsel, we will notify you of such decision at which time this representation will end unless otherwise extended by you and the firm. We look forward to working with you towards a successful resolution of this action.

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Allegations

According to the complaint, defendants provided investors with material information concerning PayPal’s expected financial targets for 2027 alongside the growth trajectory for its core branded checkout segment (“Branded Checkout”). Defendants’ statements included, among other things, confidence in PayPal’s ability to capitalize on its growth potential through new initiatives to facilitate Branded Checkout growth both in the U.S. and internationally. Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of PayPal’s salesforce; notably, that it was not truly equipped to execute on the Company’s perceived growth potential and were “too optimistic” as to how easily and expeditiously its staff could change customer adoption On February 3, 2026, PayPal announced its financial results for the fourth quarter and full fiscal year 2025, unveiling disappointing earnings results with worsening performance in Branded Checkout. The Company also unveiled a sudden and surprising transition of its Chief Executive Officer role alongside the below-expectation results. PayPal further withdrew its 2027 financial targets provided one year before and announced projections that suggested a slowdown against those prior targets. PayPal attributed its results and lowered guidance to a combination of macroeconomic factors competition, and “operational and deployment issues” across all regions. Following this news, the price of PayPal’s common stock declined dramatically. From a closing market price of $52.33 per share on February 2, 2026, PayPal’s stock price fell to $41.70 per share on February 3, 2026, a decline of about 20.31% in the span of just a single day.

Eligibility

In order to be eligible to join the PYPL class action lawsuit, you must have incurred a loss on shares of PayPal purchased during the class period listed above.

Lead Plaintiff Deadline

If you suffered a loss in PayPal during the relevant time frame or pursuant to the relevant offering(s), you have until April 20, 2026 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.

PayPal Holdings, Inc Class Action Lawsuit Details

Introduction to PayPal Holdings, Inc. (PYPL) Securities Class Action Lawsuit

A federal securities fraud class action has been filed against PayPal Holdings, Inc. (NASDAQ: PYPL) under the federal securities laws for investors who bought common stock between February 25, 2025 and February 2, 2026. Investors allege the company touted aggressive financial targets and a strong growth trajectory for its core Branded Checkout business and 2027 guidance while concealing that its salesforce and operations were not equipped to deliver. 

The complaint says PayPal's leaders repeatedly projected strength and execution during 2025. The truth surfaced on February 3, 2026, when PayPal reported disappointing results in its Q4 2025 earnings report, withdrew its 2027 targets, announced a sudden CEO transition, and admitted execution and deployment failures. The stock fell hard-down 20.31% in one day-from $52.33 on February 2, 2026 to $41.70 on February 3, 2026.

“Most PYPL shareholders never file or join the class action, which means they miss out on potential recovery funds,” said Attorney Joseph Levi.

PayPal Holdings, Inc. (PYPL) Securities Lawsuit Case Details

Case Name: Goodman v. PayPal Holdings, Inc. et al.
Case No.: 3:26-cv-01381
Jurisdiction: U.S. District Court, Northern District of California
Filed on: February 17, 2026

PayPal Holdings, Inc. (PYPL) Company Profile

PayPal enables digital payments as a publicly traded technology platform through a two-sided network that connects merchants and consumers, facilitating shopping and money transfers online and in person. Its offerings include Branded Checkout solutions like PayPal and Venmo (including Pay with Venmo and Pay Later), alongside unbranded alternatives (payment service provider, or PSP).

PayPal Holdings, Inc. (PYPL) Securities Lawsuit Class Period

February 25, 2025-February 2, 2026, inclusive.

All investors who purchased or otherwise acquired PayPal common stock (NASDAQ: PYPL securities) between February 25, 2025, to February 2, 2026, inclusive, during the class period may be eligible to join the PayPal Holdings, Inc. (PYPL) class action lawsuit.

Allegations in the PayPal Holdings, Inc. (PYPL) Securities Class Action Lawsuit

According to the complaint, PayPal Holdings, Inc., along with executives James Alexander Chriss, Jamie S. Miller, Frank Keller, and Diego Scotti, told investors they were executing a strategy that would deliver ambitious 2027 financial targets and renewed momentum in Branded Checkout. Investors allege defendants made materially false and misleading statements in these financial disclosures. They spoke in confident terms about transformation, growth, and strength. Investors allege those assurances lacked a critical truth: PayPal's salesforce and operations were not positioned to achieve what management was selling and failed to disclose material risks to branded checkout execution and 2027 guidance.

The story begins on February 25, 2025, when CEO James Alexander Chriss told investors at Analyst/Investor Day that, looking to 2027, PayPal saw high single-digit growth for transaction margin (transaction margin dollars) and had the ambition to deliver double-digit transaction margin growth "into the future" alongside "20% plus non-GAAP EPS growth." That same day, Executive Vice President Frank Keller outlined a plan to accelerate total payment volume growth to 8%-10% by 2027, measuring success by expanding the company's "new experience" share to over 80%, growing Pay Later usage by more than 20%, and increasing "Pay with Venmo" by more than 40% as key metrics for branded checkout growth.

As 2025 progressed, the optimism continued. On April 29, 2025, during the Q1 2025 earnings call, Chriss pointed to "strength" in execution, market "excitement" around new innovations, and engagement from consumers and merchants-adding, "we're just getting started." Months later, on October 28, 2025, during the Q3 2025 earnings call, he declared, "We are operating from a position of strength," and said the results were proof the strategy was working, claiming PayPal had built a "more balanced, profitable growth engine across branded experiences, PSP and Venmo."

Meanwhile, investors allege a different reality. The complaint states the 2027 targets were not achievable under Chriss's tenure and depended on an unrealistically stable consumer backdrop and flawless execution. Behind the scenes, PayPal was not equipped to deliver the growth management described and was "too optimistic" about how quickly staff could drive change and customer adoption across a massive user base, and execution was not in line with expectations set by management.

The Truth Emerges

The reckoning arrived on February 3, 2026, when PayPal released its Q4 2025 results and held an earnings call. The company reported disappointing earnings that missed consensus estimates by approximately $120 million in revenue and by 5.4% to 7.5% on adjusted earnings per share with worsening performance in Branded Checkout, announced a sudden CEO transition, and, regarding its previously touted 2027 financial targets (a withdrawal of forward-looking guidance), attributed the shortfall to "operational and deployment issues" across all regions. Interim CEO Jamie S. Miller acknowledged, "our execution has not been where it needs to be, particularly in branded checkout," and admitted, "we were too optimistic about how quickly we could drive change and customer adoption." She added that product deployment in the second half of the year was slower than planned.

These admissions cut directly against earlier assurances that PayPal was operating from a position of strength, executing its strategy, and on course for 2027 goals. The withdrawal of the 2027 outlook and the acknowledgement of execution failures contradicted prior guidance and related financial disclosures and undermined the sustained narrative of momentum and readiness presented throughout 2025.

Market Reaction

Investors and analysts reacted immediately. From a closing price of $52.33 per share on February 2, 2026, PayPal's stock (NASDAQ: PYPL) fell to $41.70 per share on February 3, 2026-a single-day decline of $10.63, or 20.31%, establishing a new 52-week low of approximately $42 and closing at $41.03 per share on February 4, 2026.

Next Steps

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

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