PayPal Execs Face Section 20(a) Liability After $10.63 Stock Drop
PayPal’s former CEO James Alexander Chriss and former CFO Jamie S. Miller face Section 20(a) liability claims in a securities class action covering Feb. 25, 2025 to Feb. 2, 2026 for alleged misrepresentations. Shares plunged $10.63, a 20.31% drop, on Feb. 3, 2026 after growth targets were withdrawn.
1. Securities Class Action Filed
A securities class action has been filed in the United States District Court for the Northern District of California against PayPal executives for alleged misrepresentations during Feb. 25, 2025 to Feb. 2, 2026, naming CEO James Alexander Chriss and CFO Jamie S. Miller as individual defendants under Section 20(a).
2. Alleged Misrepresentations and Certifications
The complaint asserts both executives certified quarterly and annual filings under Sarbanes-Oxley while concealing operational shortcomings, and directed growth projections at the February 2025 Analyst/Investor Day and April 2025 earnings call that were later withdrawn.
3. Stock Impact and Recovery Process
Shares fell $10.63 per share, a 20.31% decline on Feb. 3, 2026 after disclosure of disappointing results and withdrawn 2027 targets; the court set April 20, 2026 as the deadline to apply for lead plaintiff status.