Class Action Lawsuit Against Fly-E Group, Inc. Alerts Shareholders to Act Before Deadline

Fly-E Group, Inc. Faces Class Action Lawsuit for Securities Fraud

In a significant development for investors, Fly-E Group, Inc. (NASDAQ: FLYE) has been hit by a class action lawsuit due to alleged securities fraud. The Gross Law Firm has issued a notice encouraging shareholders who purchased FLYE stocks between July 15, 2025, and August 14, 2025, to reach out for potential lead plaintiff appointment. This notice emphasizes that while being designated as lead plaintiff is not required to seek recovery, early action is crucial.

Allegations Against Fly-E

The lawsuit points to serious allegations against Fly-E Group. According to the complaint, the company's leadership knowingly provided overly optimistic statements about the performance and safety of their lithium batteries used in electric vehicles. This, while simultaneously withholding critical adverse information. The repercussions were severe; Fly-E’s sales performance took a nosedive, contradicting earlier projections and increasing operational costs that ultimately eroded profit margins.

On August 14, 2025, the situation worsened when Fly-E disclosed its inability to file the quarterly Form 10-Q on time, revealing a staggering 32% drop in net revenues, blamed largely on declining unit sales and safety issues linked to lithium battery failures in electric bikes and scooters. This disclosure precipitated a rapid stock price collapse. After closing at $7.76 on the day of the announcement, shares plummeted to just $1.00 the following day, representing an 87% loss in just 24 hours.

Importance of Acting Promptly

Shareholders are advised not to hesitate in registering for participation in this class action. The looming deadline to act is November 10, 2025; failure to register by this date may forfeit the right to partake in potential recoveries. By registering, investors will have access to portfolio monitoring software to keep track of case developments.

The Gross Law Firm, a nationally recognized class action firm, has positioned itself as a defender of investor rights against fraudulent business practices. Their commitment lies in ensuring companies are held accountable for misleading investors and upholding good corporate governance. The firm emphasizes there is no cost associated with participation in this class action, making it accessible for affected shareholders.

Furthermore, Open communications are encouraged; interested shareholders can initiate contact through the firm’s website to secure their rights and address any inquiries about the class action process.

Next Steps for Affected Investors

1. Register: Shareholders who bought stocks during the specified period must register their details on the Gross Law Firm's dedicated page.
2. Stay Informed: Once registered, participants will be enrolled in a portfolio monitoring service to receive status updates related to the class action.
3. Consider Lead Plaintiff Status: If applicable, contemplate applying for lead plaintiff status before the November 10 deadline to possibly spearhead the case.

This situation underlines the importance of transparency in corporate communications and the essential role of law firms in advocating for shareholder rights amidst potential securities violations. For Fly-E investors, the next steps are critical to ensuring justice and possible recovery for losses incurred due to misleading information.