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Seeger Weiss is proud to announce founder Chris Seeger has been appointed to serve as liaison counsel in the In re PayPal Holdings Inc. Securities Litigation by the honorable Judge Georgette Castner in the U.S. District Court of New Jersey.
“I am honored to have been chosen by Judge Castner to serve as liaison counsel in this important litigation,” said Seeger. “I look forward to working with the leadership team to hold PayPal and its officers accountable for the fraudulent scheme that caused shareholders to suffer significant losses and damages.”
Between February 3rd 2021 and February 1st 2022, PayPal had a massive growth in their Net New Active Accounts (NNAs) and instructed their investors to value their growth as one of the most important indicators of how the company was performing because, in theory, the more accounts on the platform, the more opportunity to earn transaction fees on the increasing number of accounts. The reason for this increase in NNAs was because of cash marketing incentives to customers for new account openings. However, the company failed to inform investors that many of the additional users acquired through its cash account creation incentive campaigns were illusory, because those campaigns were easily susceptible to fraud.
PayPal disclosed this information in their fourth quarter and full year 2021 results and identified 4.5 million accounts that it believes to be illegitimately created due to the incentive campaigns. On these shocking disclosures, PayPal’s stock price fell $43.23, or 25 percent, in one-day – representing a $62 billion drop in market capitalization. As a result of Paypal’s and its officers’ wrongful acts and omissions – the precipitous decline in market value of the Company’s common stock when the truth was disclosed – the Plaintiff and other class members suffered significant losses and damages.
One of the nation’s preeminent plaintiffs’ law firms, Seeger Weiss is best known for multidistrict mass torts and class actions in both state and federal court. From offices in New York, New Jersey, and Pennsylvania, the firm has represented over 10,000 individuals, companies, and governments across the U.S. who have been injured or defrauded on a massive scale. Since its founding in 1999, Seeger has led many of the most complex and high-profile cases in the country: the National Prescription Opiate Litigation, which the Washington Post called “the largest federal court case in U.S. history”; 3M Combat Arms Earplug Products Liability Litigation, which the Minneapolis Star Tribune called “one of the largest mass torts ever”; the “Dieselgate” scandal; and the history-making National Football League Players’ Concussion Injury Litigation.