The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased or otherwise acquired PayPal Holdings, Inc. (“PayPal” or the “Company”) (NASDAQ: PYPL) common stock between February 25, 2025 and February 2, 2026, inclusive (the “Class Period”). PayPal investors have until April 20, 2026 to file a lead plaintiff motion.

What Happened?

On February 3, 2026, PayPal announced a surprise leadership change, replacing Chief Executive Officer Alex Chriss, effective immediately. PayPal noted in its announcement the “pace of change and execution was not in line with the Board’s expectations.”

The leadership change coincided with the Company’s fourth quarter and full year 2025 earnings report, wherein PayPal admitted “execution has not been where it needs to be, particularly in branded checkout.” The Company revealed, among other things, net revenue for the quarter had only increased 3% on a currency neutral basis.

On this news, PayPal’s stock price fell $10.63, or 20.3%, to close at $41.70 per share on February 3, 2026, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) PayPal had overstated its ability to execute on its business initiatives; (2) PayPal was not effectively executing on Branded Checkout initiatives; (3) PayPal had unduly dismissed investor concerns of competition; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.