A shareholder claims in a federal District of Delaware complaint filed Wednesday that PayPal Holdings Inc. misled investors by including millions of inactive bot accounts in its projections for revenue growth.

According to the complaint, filed by Rigrodsky Law and the Grabar Law Office, PayPal’s cash incentive promotions throughout 2021 were linked to the creation of 4.5 million illegitimate accounts, with PayPal in early 2021 projecting new user accounts to grow at rates exponentially higher than the revised ones given by management earlier this year.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]