PayPal Sheds Investors’ Suit Alleging Credit, Debit Rule Evasion

A pair of investors who say they lost money on PayPal Holdings Inc. stock can’t proceed with claims that the company made misleading statements about its compliance with consumer credit and debit line regulations and a consent order, a federal court in California said.

Huei-Ting Kang and Arthur Flores didn’t “plausibly plead that PayPal misrepresented anything,” Judge Charles R. Breyer said Monday for the US District Court for the Northern District of California.

PayPal leadership was recently hit with a derivative suit in Delaware Chancery Court with allegations echoing those here.

Kang and Flores sought to represent a class of ...