PayPal Ducks Shareholder Suit Over FTC Venmo Inquiry
Law360, Los Angeles (January 19, 2018, 6:05 PM EST) -- A California federal judge on Thursday granted PayPal's bid to dismiss a proposed shareholder class action stemming from a Federal Trade Commission investigation into the company's Venmo app, saying the shareholders failed to show PayPal's board faced a substantial likelihood of liability on any claims.
The shareholders launched their suit in January 2017, claiming PayPal Holdings Inc.'s executives covered up the FTC inquiry by not disclosing it in proxy statements while seeing re-election. However, they did not make a pre-suit demand on the board as required by federal statute. They claimed the board wouldn't have listened to their demand because a...
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