PayPal Board Sued Over ‘Branded Checkout’ Segment’s Growth Miss

PayPal Holdings Inc.‘s directors and top executives misled the public about the growth potential and macroeconomic risks associated with PayPal and Venmo brand payment services, harming the company, an investor alleges.

Six of the current and former PayPal Holdings leaders cashed in while the company’s stock was artificially inflated, pulling in a combined $12.4 million, Alberto Goncalves says. He filed his derivative suit Wednesday in the US District Court for the Northern District of California.

The harm to the company includes its $1.9 billion overpayment when repurchasing its own stock, its need to defend itself in a parallel securities ...