PayPal Holdings (PYPL) Faces Securities Class Action Amid $9 Billion Market Cap Wipeout, CEO Departure -- Hagens Berman

PYPL Investors with Losses Encouraged to Contact Hagens Berman

SAN FRANCISCO, March 16, 2026 /PRNewswire/ -- A securities class action lawsuit has been filed against PayPal Holdings, Inc. (NASDAQ: PYPL) seeking to represent investors who purchased or otherwise acquired PayPal common stock between February 25, 2025 and February 2, 2026.

The lawsuit follows PayPal's unexpectedly disappointing February 3, 2026 Q4 and FY 2025 financial report and the abrupt departure of its CEO.

The market swiftly reacted, with a selloff sending the price of PayPal shares down 20% in a single day and wiping out more than $9 billion of the company's market capitalization.

The developments and severe market reaction have prompted national shareholders rights firm Hagens Berman to investigate the alleged claims in the pending suit that PayPal violated the federal securities laws.

The firm urges PayPal investors who suffered significant losses to submit your losses now.

Class Period: Feb. 25, 2025 – Feb. 2, 2026
Lead Plaintiff Deadline: Apr. 20, 2026
Visit: www.hbsslaw.com/investor-fraud/pypl
Contact the Firm Now: [email protected]
                                       844-916-0895

PayPal Holdings, Inc. (PYPL) Securities Class Action:

The litigation focuses on the propriety of PayPal's statements about the growth trajectory for its core Branded Checkout segment.

The complaint alleges that the company made repeated assurances of sustained growth in Branded Checkout and the success of its initiatives to drive that growth as well as its competitive strengths domestically and abroad.

The complaint contends that PayPal and its management misled investors by creating the false impression that the company's revenue and growth outlook were reliable and by minimizing the risks of seasonality and macroeconomic fluctuations. The complaint further alleges that PayPal's growth assurances were not achievable under the now-former CEO because, in part, they required an unrealistically stable consumer environment along with strong execution and continued competitive advantages.

Investors' expectations were dashed on February 3, 2026. That day, PayPal announced its fourth quarter and full year 2025 financial results that included a shocking deceleration in Branded Checkout growth. The most significant red flag for investors was the Branded Checkout total payment volume growth of just 1%, which was sharply down from 5% growth during the third quarter.

In addition to blaming its dismal results on domestic and international macroeconomic softness and increased competitive intensity, PayPal revealed "operational and deployment issues that amplified the pressure[]" and said it would "focus on giving consumers a reason to come back."

PayPal also announced the abrupt replacement of its CEO.

This news drove the price of PayPal shares sharply lower on February 3 and was followed by a wave of analyst downgrades, reportedly due to a lack of visibility into growth re-acceleration.

"We're investigating whether PayPal may have intentionally misled investors about the success and execution of its touted growth initiatives," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.

If you invested in PayPal and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the PayPal case and the firm's investigation, read more »

Whistleblowers: Persons with non-public information regarding PayPal should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

SOURCE Hagens Berman Sobol Shapiro LLP