NEW YORK, April 29, 2016 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential misconduct at PayPal Holdings, Inc. ("PayPal" or the "Company") (NasdaqGS: PYPL).
The investigation focuses on whether the Company's Board of Directors and/or its officers committed mismanagement and breached their fiduciary duties. On April 28, 2016, the Company filed a quarterly report on Form 10-Q with the SEC for the quarter ended March 31, 2016 announcing that U.S. regulators are investigating the Company's Venmo free peer-to-peer payment service in connection with potential unfair trade practices.
In the Form 10-Q, the Company stated the following: "On March 28, 2016, we received a Civil Investigative Demand ("CID") from the Federal Trade Commission ("FTC") as part of its investigation to determine whether we, through our Venmo service, have been or are engaged in deceptive or unfair practices in violation of the Federal Trade Commission Act. The CID requests the production of documents and answers to written questions related to our Venmo service. We are cooperating with the FTC in connection with the CID. The CID could lead to an enforcement action and/or one or more consent orders, which may result in substantial costs, including legal fees, fines, penalties, and remediation expenses and actions, and could require us to change aspects of the manner in which we operate Venmo."
If you currently own PayPal stock and would like to discuss your legal rights, please visit www.faruqilaw.com/PYPL. You can also contact us by calling Stuart Guber toll free at (215) 277-5770 or by sending an e-mail to [email protected]. Faruqi & Faruqi, LLP also encourages anyone with information regarding PayPal's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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