[Chambo]

Separately, eBay, PayPal and Bill Me Later are fighting a lawsuit in which the plaintiffs alleged that Bill Me Later operates as a money lender, and, in that capacity, violates California's usury law and other statutes. WebBank, Bill Me Later's former issuer, joined the case as an intervenor in September 2011, and the case was transferred to Utah the following month. eBay and WebBank filed a motion to dismiss the case in March 2012, and a hearing on the still-pending case was held in September of that year.

"We believe that plaintiffs' allegations are without merit and intend to defend ourselves vigorously," eBay said in its filing with the SEC. "However, this area of law is uncertain and if the lawsuit is successful, Bill Me Later may be required to change its methods of operations, pay very substantial damages and reduce some of its charges and fees, which would adversely affect our business."