9th Circ. OKs Dismissal Of PayPal Investors' Data Breach Suit
Law360 (December 17, 2020, 10:54 PM EST) -- The Ninth Circuit affirmed a lower court's dismissal Thursday of a proposed class action brought by PayPal investors alleging that the company concealed information and attempted to mislead shareholders concerning a 2017 data breach.
In a three-page, unpublished opinion, a three-judge panel determined that PayPal's initial announcement notifying the public of security vulnerabilities, rather than an actual security breach, was not purposefully misleading, since PayPal admitted that the issue was of enough concern to suspend operations of the subsidiary linked to the incident.
"We cannot conclude that plaintiffs have shown a cogent and compelling inference that the defendant's November announcement was...
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