PayPal Accounts Included Many Made by Bots, Stockholder Says

Bot farms, rather than legitimate new customers, created many new PayPal Holdings Inc. accounts in response to a financial incentive, leading to a stock drop when the vulnerability came to light, an investor says in a proposed securities class action filed Tuesday.

PayPal promoted “net new active accounts” as a key company metric as it lost eBay Inc. business, according to the complaint, filed in the US District Court for the District of New Jersey. The institutional investor that brought the suit is the Defined Benefit Plan of the Mid-Jersey Trucking Industry and Teamsters Local 701 Pension and Annuity Fund. ...