Bloomberg Law
Jan. 23, 2018, 4:37 PM UTC

PayPal Directors Get Reprieve as Shareholder Venmo Suit Dismissed

Bloomberg Law - Staff Reports

PayPal directors caught a break in a shareholder derivative suit over alleged inadequate disclosures about problems with smartphone payment startup Venmo as a federal judge dismissed the case.

The shareholders failed to ask PayPay Holdings Inc. to bring suit on behalf of the corporation before they sued. Nor did they show that such a request was futile, the court said Jan. 18.

PayPal directors allegedly failed to disclose federal regulatory investigations of Venmo, then a service within PayPal, according to the shareholder derivative suitfiled a year ago in the U.S. District Court for the Northern District of California. Failure ...

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