PayPal Holdings Inc. (NASDAQ: PYPL) dropped 1.93% amid the dominance of downward correctional wave while affected by the piercing the main upward trend with the negative burden from 50-day SMA. The company faces a securities fraud class action filed by Kessler Topaz Meltzer & Check LLP and Berstein Leibhard.
Paypal facing securities class lawsuit
The law firms have filed the class-action suit on behalf of investors that purchased the company’s securities between February 9, 2017, and July 28, 2021. The lead plaintiff deadline is October 19, 2021, for investors who incurred losses to submit their details.
PayPal is a tech platform and online payments firm that allows mobile and digital payments on behalf of merchants and consumers globally. Its services entail PayPal Credit and some debit card services.
According to the complaint in the class action, the company made a misleading or false statement and/or didn’t disclosed that the company had deficient disclosure pressured and controls. As a result, its business practices connected to PayPal Credit were non-compliant. In addition, the practices on payment of interchange rates associated with PayPal debit cards were non-compliant with applicable regulations and laws. Therefore, the company’s revenue from credit and debit card operations was subject to improper conduct and unsustainable. All these subjected the firm to increased regulatory probe or enforcement risk, and thus the public statements were materially misleading or false.
PayPal partners with Honey and IIDFT
Honey has partnered to introduce cashback, and users can now redeem Honey Gold reward points earned by shopping online. The offering is one of the existing range of rewards and tools seeking to help users save money.
Also, the company has entered an MOU with the Indian Institute of Foreign Trade to help bolster the knowledge base of Indian micro, small and medium enterprises (MSMEs). The partnership will launch the India Digital Trade Facilitation Forum for MSMEs. IDTFF will conduct training, capacity building, and education to empower MSMEs and scaling of their business.