Archer & Greiner partner David Edelstein has entered an appearance for PayPal Holdings and other defendants in a pending stockholder derivative lawsuit pertaining to the company's 'net new active accounts,' a key 2021 internal operational metric. The case, filed April 4 in New Jersey District Court by Herman Jones LLP on behalf of Stephen Nelson, accuses the company's officers and directors of failing to disclose that many of the new customers that received cash incentives to open new accounts were actually bot farms that created and profited from millions of fraudulent PayPal accounts. According to the suit, the 4.5 million fraudulent accounts caused the company's stock prices to fall by 25 percent, erasing roughly $50 billion in market value. The case, assigned to U.S. District Judge Georgette Castner, is 3:23-cv-01913, Nelson v. Schulman et al.
Banking & Financial Services
April 26, 2023, 7:32 AM