PayPal 'Soft-Pedaled' Data Breach Disclosure, 9th Circ. Told

Law360 (November 19, 2020, 10:26 PM EST) -- PayPal investors urged the Ninth Circuit on Thursday to revive a proposed class action alleging the company hid what it knew about a 2017 data breach, allegedly causing its stock to later drop when the hack was revealed, arguing that PayPal "soft-pedaled" its initial announcement to avoid a strong market reaction.

During a video-conferencing hearing, Laurence Rosen of The Rosen Law Firm PA argued on behalf of investors that when the company decided to issue a press release in November 2017 announcing that "vulnerabilities" potentially exposed its system, the company also had a legal obligation to disclose that it knew about...

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