Pomerantz LLP filed a class-action lawsuit against PayPal Holdings, Inc. alleging securities fraud and unlawful business practices.
The litigation follows PayPal’s February 3, 2026, announcement of disappointing fourth-quarter and full-year 2025 financial results.
During that announcement, the company confirmed the departure of CEO Alex Chriss and the withdrawal of its 2027 financial targets.
The lawsuit contends that PayPal issued materially false and misleading statements regarding its operational health.
Plaintiffs specifically allege that the company failed to disclose performance weaknesses within its Branded Checkout segment.
Investors who purchased PayPal securities during the specified class period must move the court by April 20, 2026, to be appointed as lead plaintiff.
PayPal’s stock price experienced a significant decline immediately following the earnings report and the disclosure of these operational shifts.