Overview

A class action lawsuit has been filed against PayPal Holdings, Inc. (“PayPal” or the “Company”) (NASDAQ : PYPL) and certain of the Company’s senior executive officers (collectively, “Defendants”) alleging violations of the federal securities laws. The PayPal lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired PayPal securities between February 25, 2025, and February 2, 2026, inclusive (the “Class Period”). Investors have until April 20, 2026, to seek appointment as lead plaintiff of the PayPal class action lawsuit.

PayPal is an international company that enables digital payments to simplify commerce experiences. PayPal operates a two-sided network, connecting merchants on the one hand to consumers on the other in order to facilitate shopping and the transfer of money securely online or in person through its Branded Checkout solutions, such as PayPal and Venmo, as well as through unbranded alternative offerings.

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding PayPal’s growth strategy and financial outlook, particularly with respect to its “Branded Checkout” business. PayPal repeatedly assured investors that it was successfully executing a transformation strategy designed to accelerate Branded Checkout growth and drive high single-digit transaction margin growth by 2027. The Company emphasized strong consumer adoption, successful rollout of upgraded checkout experiences, growing penetration in key international markets (including Germany and the U.K.), and confidence in its ability to meet 2027 financial targets.

In truth, PayPal’s optimistic plan for growth through various initiatives to bolster the Company’s Branded Checkout offerings fell short of reality as the 2027 targets were not achievable; they required both an unrealistically stable consumer landscape and strong execution with clear direction from PayPal and its management. PayPal was simply not equipped to execute on Defendants’ claimed growth potential.

The truth began to emerge on February 3, 2026, when PayPal reported disappointing fourth quarter and full-year 2025 results. Online Branded Checkout total payment volume grew just 1%, a sharp deceleration from prior quarters. The Company acknowledged that it had been “too optimistic” about how quickly it could drive customer adoption and admitted to operational and deployment issues that slowed progress. PayPal also withdrew its previously announced 2027 financial targets and announced the abrupt departure of its CEO.

On this news, PayPal’s stock price fell from $52.33 per share on February 2, 2026, to $41.70 per share on February 3, 2026, a decline of more than 20%.

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If you purchased or otherwise acquired PayPal securities between February 25, 2025, and February 2, 2026, and you wish to serve as lead plaintiff in this lawsuit, you are encouraged to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt attorneys Brian O’Mara and Hani Farah by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the PayPal class action lawsuit is April 20, 2026.