PayPal Misled Investors About Student Credit Product, Suit Says

PayPal Holdings Inc.'s directors and top executives misled investors about compliance problems that sparked a CFPB probe into the company’s marketing of credit products to students and other consumers, a new shareholder suit says.

The leaders of the San Jose, Calif.-based company “failed to disclose compliance issues” with its PayPal Credit product in SEC filings between February 2017 and July 2021, shareholder Shang Pang said in a complaint filed Thursday in the U.S. District Court for the Northern District of California.

The defendants, including PayPal President and Chief Executive Officer Daniel Schulman, touted compliance with a 2015 Consumer Financial Protection ...