PayPal Investors with Substantial Losses Can Lead Class Action Lawsuit

Robbins Geller Rudman & Dowd LLP announces opportunity for investors to serve as lead plaintiff in PayPal class action lawsuit.

Feb. 21, 2026 at 6:20pm

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Robbins Geller Rudman & Dowd LLP has announced that investors who purchased or acquired PayPal Holdings, Inc. (NASDAQ: PYPL) common stock between February 25, 2025 and February 2, 2026 have until April 20, 2026 to seek appointment as lead plaintiff in a class action lawsuit against PayPal and certain of its top executives. The lawsuit alleges the defendants created a false impression about PayPal's projected revenue and growth outlook.

Why it matters

The lawsuit alleges that PayPal and its executives misled investors about the company's financial performance and growth prospects, which resulted in substantial losses for investors when the truth was revealed. This class action lawsuit provides an opportunity for affected investors to potentially recover their losses.

The details

The class action lawsuit, captioned Goodman v. PayPal Holdings, Inc., No. 26-cv-01381 (N.D. Cal.), alleges that PayPal and certain of its top current and former executives violated the Securities Exchange Act of 1934. The complaint claims the defendants created a false impression that they had reliable information about PayPal's projected revenue and growth, when in reality the company's optimistic plans fell short due to unrealistic targets and operational issues. On February 3, 2026, PayPal announced disappointing earnings results, worsening performance in its Branded Checkout offerings, and the withdrawal of its 2027 financial targets, causing the stock price to drop more than 20%.

  • The class period is from February 25, 2025 to February 2, 2026, both dates inclusive.
  • Investors have until April 20, 2026 to seek appointment as lead plaintiff in the class action lawsuit.

The players

PayPal Holdings, Inc.

A technology platform that enables digital payments for merchants and consumers.

James Alexander Chriss

The former CEO of PayPal whose tenure was marked by the company's failure to meet its 2027 financial targets, according to the lawsuit.

Robbins Geller Rudman & Dowd LLP

A law firm representing investors in the class action lawsuit against PayPal.

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What they’re saying

“You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com.”

— J.C. Sanchez, Attorney, Robbins Geller Rudman & Dowd LLP (BusinessWire)

What’s next

The judge in the case will decide on April 20, 2026 whether to allow the class action lawsuit to proceed with a lead plaintiff.

The takeaway

This case highlights the importance of transparency and accurate financial reporting by public companies, as well as the legal recourse available to investors who suffer substantial losses due to alleged corporate misconduct.