PayPal Class Action and Lawsuit Status: No Settlement, No Claim Form — Here Is What Is Pending
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As of September 30, 2026, there is no PayPal settlement with a claim form, a fund or a deadline. The PayPal lawsuit headlines this summer come from separate cases: on June 22, 2026 a federal judge let creators' class action over the Honey browser extension go forward; a week earlier a Honey shoppers' case brought for UK residents was dismissed and has since been appealed; and on September 1, 2026 Venmo users filed a privacy class action. Two securities class actions by investors sit alongside them. None of them pays PayPal customers anything today.
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Reviewed by Leonard Goldberg, Editor · Last updated
What the PayPal Lawsuits Say
Honey (creators). Honey is a free browser extension that PayPal bought for $4 billion in 2020; at checkout it pops up to look for coupons or rewards. The lawsuit is brought by affiliate marketers — YouTubers, bloggers and other creators who earn a commission, up to 40% of the sale price per the complaint, when someone buys through their link. It alleges that when a shopper clicks the Honey pop-up, Honey replaces the creator's affiliate ID with PayPal's own by “cookie stuffing,” so the commission goes to PayPal, and that Honey only “stands down” when it detects a network tester or auditor rather than a real shopper. The claims include the federal Computer Fraud and Abuse Act, unjust enrichment, interference with contracts, and California and Washington consumer-protection laws.
Honey (shoppers). A separate suit alleged that PayPal misrepresented that Honey finds shoppers the “best” deals while its merchant partnerships withhold better ones. It was brought on behalf of UK residents.
Venmo privacy. The newest suit alleges that PayPal embedded tracking technology from mParticle and Kochava in Venmo, letting those companies receive a sender's full name, email address, phone number, amount paid, the payment note and the recipient — including for payments users had set to Private.
Investors. Shareholder suits allege PayPal failed to disclose impediments to its branded checkout growth strategy that impaired its ability to meet its 2027 financial targets. All of these are allegations; no court has found PayPal liable in any of them.
Case Details
Honey creators: In re PayPal Honey Browser Extension Litigation, No. 5:24-cv-09470-BLF, U.S. District Court for the Northern District of California (San Jose), Judge Beth Labson Freeman, filed December 29, 2024. The caption of the June 2026 order still reads Wendover Productions, LLC v. PayPal Inc.
Honey shoppers (UK residents): Campbell v. Honey Science, LLC, No. 5:25-cv-02850, same court, Judge P. Casey Pitts. According to PayPal's law firm, the court dismissed it with prejudice on June 15, 2026; an appeal was docketed at the Ninth Circuit on July 15, 2026 (No. 26-4493).
Venmo privacy: Borquez v. PayPal, Inc. d/b/a Venmo, No. 5:26-cv-09340, Northern District of California, filed September 1, 2026.
Investors: In re PayPal Branded Checkout Securities Litigation, No. 3:26-cv-01589, Northern District of California, first filed February 24, 2026 and consolidated May 21, 2026. An older case, In re PayPal Holdings, Inc. Securities Litigation, No. 22-cv-5864 (D.N.J.), was dismissed with prejudice on March 31, 2026 and is on appeal to the Third Circuit.
Status: Pending Cases, No PayPal Settlement
Honey creators — moving forward. Judge Freeman dismissed the first amended complaint on November 21, 2025 because the creators had not tied their lost commissions to Honey, and let them amend. The second amended complaint, filed January 5, 2026, added the contract terms. On June 22, 2026 she denied PayPal's motion to dismiss it. That means the claims may proceed — it is not a finding that PayPal did anything wrong, and no class has been certified.
Honey shoppers — dismissed, on appeal. Venmo privacy — filed September 1, 2026. Investors — the Branded Checkout case is at an early stage; the older case is on appeal.
The only recent money paid over PayPal practices went to governments: New York's $2 million cybersecurity penalty in January 2025 and state settlements over Venmo in December 2025, covered on our Venmo lawsuit page.
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There's no claim deadline yet. We'll email you if a settlement opens a claim period.
Who Each Case Covers
If you shopped with Honey in the U.S.: the creators' case is not about you — it is brought by affiliate marketers over commissions. The shoppers' case that was filed covered UK residents and has been dismissed. As of September 30, 2026, we found no pending U.S. shoppers' class action over Honey in federal court records.
If you are a creator or affiliate marketer whose links Honey allegedly overrode: the plaintiffs sue on behalf of “all other similarly situated individuals and entities.” No class has been certified and there is nothing to sign up for.
If you use Venmo and set your account, or at least one payment, to Private, you may fall within the proposed class in Borquez, which as the complaint defines it also requires that your information was disclosed to third parties and that you have not filed an arbitration demand against PayPal. The case was filed September 1, 2026; no court has accepted that class.
If you bought PayPal stock between February 8, 2024 and February 2, 2026, you are within the proposed class period of the Branded Checkout case. Nothing needs to be filed now; a claim process only appears if the case settles or wins.
One clause affects every account holder. PayPal's U.S. user agreement, last updated September 14, 2026, sends most disputes to individual arbitration and contains a class action waiver. New users can opt out by written notice postmarked no later than 30 days after first accepting it. Small-claims court remains available for individual claims.
PayPal Settlement Money: What Exists and What Doesn't
What did pay out went to governments, not account holders. New York's Department of Financial Services collected a $2,000,000 penalty over the 2022 tax-form exposure. Hawaii announced a $6 million settlement with PayPal on December 22, 2025 over Venmo and PayPal advertising, and New Hampshire's attorney general announced a separate $1.75 million settlement. Hawaii's announcement describes no claim process for individuals.
A settlement payment that arrives through PayPal is not a PayPal settlement: administrators often offer PayPal as a way to get paid. The tuna antitrust settlement, for example, began paying approved claims by check or PayPal on September 8, 2026 (our report). To see which settlements are paying or accepting claims right now, use our list of open class action settlements.
PayPal Lawsuit Timeline
- 1
December 2022 — Tax Forms Exposed
PayPal's new Form 1099-K pages, live since October 18, 2022, showed names, dates of birth and full Social Security numbers unmasked. On December 7, 2022, PayPal concluded that attackers were using credential stuffing — reused passwords — to get in, according to New York regulators. News reports put the affected accounts at about 35,000.
- 2
December 29, 2024 — Creators Sue Over Honey
Affiliate marketers file the case that becomes In re PayPal Honey Browser Extension Litigation in federal court in San Jose.
- 3
January 23, 2025 — New York Fines PayPal $2 Million
A New York Department of Financial Services consent order ties the 2022 exposure to cybersecurity failures. The penalty goes to the state, not to customers.
- 4
December 22, 2025 — Hawaii Settles for $6 Million
Hawaii's Office of Consumer Protection resolves its 2022 suit over Venmo Purchase Protection, privacy and fund-access advertising. No claim process for individuals is announced.
- 5
June 15 and 22, 2026 — Two Honey Rulings
The UK shoppers' case is dismissed with prejudice, per PayPal's law firm. A week later Judge Freeman denies PayPal's motion to dismiss the creators' case.
- 6
September 1, 2026 — Venmo Privacy Class Action
Borquez v. PayPal alleges Venmo sent private payment details to mParticle and Kochava. As of September 30, 2026, no PayPal case has a settlement or claim form.
Three Things to Watch For
No PayPal case has a claim form, which leaves room for these:
“PayPal settlement” pages with a projected deadline
Some sites list estimated claim deadlines or payout ranges for PayPal cases. No court has set any deadline, because nothing has settled. A real claim site is named in a court-approved notice and never charges a fee.
Settlement “payments” that ask for money back
Because real administrators do pay through PayPal, an invoice or money request labeled as a settlement looks plausible. A genuine settlement payment never requires you to pay, refund or “verify” anything first — check the sender against the administrator named on the official settlement website.
Requests for your PayPal login to “confirm class membership”
The 2022 exposure worked through reused passwords. Anyone asking for your PayPal password or a one-time code to add you to a Honey or Venmo case is running the same play — class membership is never checked by logging in to your account.
PayPal Lawsuit — Questions People Actually Ask
Is there a PayPal class action settlement I can file a claim in right now?
No. As of September 30, 2026, no PayPal settlement has a fund, an administrator, a claim form or a deadline. The pending cases — Honey (creators), Venmo privacy and the investor suits — are all before any settlement. If that changes, class members are told through a court-approved notice.
What is the PayPal Honey lawsuit?
A class action by YouTubers, bloggers and other affiliate marketers who say the Honey browser extension overwrote their affiliate links at checkout and took commissions they had earned. Judge Beth Labson Freeman denied PayPal's motion to dismiss on June 22, 2026, so the claims continue in In re PayPal Honey Browser Extension Litigation, No. 5:24-cv-09470. It is not a settlement.
I used Honey when shopping. Can I join the PayPal lawsuit?
Not the creators' case — it is about commissions owed to affiliate marketers, not shoppers' savings. A shoppers' case alleging Honey did not find the “best” deals was brought for UK residents and dismissed on June 15, 2026, according to PayPal's law firm; the plaintiffs appealed. As of September 30, 2026, we found no pending U.S. shoppers' class action over Honey in federal court records.
Is there a PayPal data breach settlement?
Not for customers. The December 2022 tax-form exposure led to a $2,000,000 New York penalty paid to the state. A proposed class action over it, Pillard v. PayPal, Inc. (No. 5:23-cv-00936, N.D. Cal.), was filed March 2, 2023 and shows as closed on the court docket on May 15, 2023; we found no settlement. Separately, PayPal told about 100 PayPal Working Capital customers in February 2026 that a loan-application error exposed their data from July 1 to December 13, 2025. For what breach settlements usually pay, see our data breach settlement calculator.
What is the new Venmo class action?
Borquez v. PayPal, Inc. d/b/a Venmo, filed September 1, 2026 in the Northern District of California, alleges that tracking tools from mParticle and Kochava received Venmo users' names, contact details, amounts, payment notes and recipients — including for payments set to Private. It was filed on September 1, 2026; as of September 30, 2026, no class has been certified. Earlier Venmo matters, including the December 2025 state settlements, are on our Venmo lawsuit page.
I own PayPal stock. Is there a PayPal securities class action?
One is active and one is on appeal. In re PayPal Branded Checkout Securities Litigation (No. 3:26-cv-01589, N.D. Cal.) covers purchases between February 8, 2024 and February 2, 2026; lead plaintiffs were appointed May 21, 2026. The April 20, 2026 date in law-firm ads was the deadline to ask to be lead plaintiff, not a claim deadline. The earlier case over account-growth statements (class period February 3, 2021 to February 1, 2022) was dismissed with prejudice on March 31, 2026 and appealed on April 30, 2026.
Can I sue PayPal over a frozen account or held funds?
Usually not as part of a class action. PayPal's user agreement sends most disputes to individual arbitration and includes a class action waiver; small-claims court is the exception, and the opt-out window closes 30 days after you first accept the agreement. You can also file a complaint with the CFPB. PayPal's own filings say the CFPB has sent it civil investigative demands about its investigation and error-resolution obligations under Regulation E — an inquiry, not a finding.
I received a settlement payment through PayPal. Is that a PayPal settlement?
No. Settlement administrators often let claimants choose PayPal as the payout method, so the money comes from another company's case. The tuna antitrust settlement, for example, began paying approved claims by check or PayPal on September 8, 2026 (our report). Check the sender against the administrator named on the official settlement website, and never pay anything to receive it.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.
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