Investors Sue PayPal Following 20.31% Share Plunge and Missed Growth Targets
PayPal faces a class action from investors who purchased shares between February 25, 2025, and February 2, 2026, alleging executives misrepresented Branded Checkout growth and revenue outlook. The complaint cites the March 1, 2026 CEO change and a 20.31% one-day share decline after disappointing fourth-quarter results.
1. Class Action Allegations
Shareholders filed a class action for purchases between February 25, 2025, and February 2, 2026, alleging that PayPal misled investors about revenue forecasts and Branded Checkout performance.
2. Alleged Misrepresentation on Branded Checkout Growth
The complaint asserts executives created a false impression of reliable information on projected revenue outlook and minimized seasonality and macroeconomic risks, claiming 2027 growth targets were unrealistic under the previous management.
3. Leadership Change and Q4 Results
On February 3, PayPal reported disappointing fourth-quarter and full fiscal year results and announced Chriss’s replacement by Enrique Lores as President and CEO effective March 1, 2026, noting branded checkout metrics fell short of plan.
4. Stock Price Impact
Following the results, PayPal shares plunged from $52.33 on February 2, 2026, to $41.70 on February 3, marking a 20.31% one-day decline.