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The lawsuit alleges that the online billing company illegally restricts customers with access to their funds.
A class-action suit was filed against PayPal this week, just days after its initial public offering of stock.
The lawsuit, filed in the California Superior Court in Santa Clara County on behalf of customers by the law firm of Jacoby & Meyers, alleges that the online billing company illegally restricts customers with access to their funds. PayPal halts transactions on accounts if it suspects fraudulent activity, which can delay fund access and outgoing and incoming payments. PayPal raised more than $70 million in its Feb. 14 IPO.
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