#United States #New York #Class Action #Pomerantz LLP #Flywire Corporation

Pomerantz Law Firm Takes Action Against Flywire Corporation

Pomerantz LLP has recently filed a class action lawsuit against Flywire Corporation (NASDAQ: FLYW) and certain of its officers, shedding light on serious allegations regarding violations of U.S. securities laws. The suit is based on claims made by investors who acquired Flywire securities during a set period from February 28, 2024, to February 25, 2025. The case was formally lodged in the United States District Court for the Eastern District of New York under docket number 25-cv-04110.

Allegations of Misleading Statements

The core of the lawsuit revolves around accusations that Flywire’s executives misrepresented the company’s revenue growth trajectory and downplayed adverse impacts stemming from new international student permit and visa regulations in key markets like Canada and Australia. As these permit caps and tightened visa restrictions were introduced, they were asserted to have significantly undermined Flywire's business, particularly in the education sector—a crucial segment for the company.

During the previously mentioned Class Period, it appears that Flywire's management claimed their revenue growth was sustainable while providing optimistic forecasts, which, according to the lawsuit, were materially false. Notably, in November 2024, executives maintained that Flywire was on track to deliver robust revenue figures, dismissing the potential negative implications of shifting permit policies.

The Impact of Visa Policies

The plaintiffs highlighted that the Canadian government had begun limiting the number of international student permit applications starting January 2024. This policy change was reported to correspond with a decrease in international student enrollment, which severely impacted Flywire's payment processing volume in the education vertical. Similarly, tightening visa rules in Australia were reported to adversely affect Flywire’s financial performance in that region as well.

Despite these changes, Flywire continued to project revenue growth, with expectations of year-over-year increases that misrepresented the actual market scenario. This discrepancy ultimately led to a considerable disconnect between the company's public statements and the financial realities faced by investors.

Financial Results and Investor Reactions

The situation escalated on February 25, 2025, when Flywire announced disappointing fourth-quarter earnings, reporting a loss per share and revenues that fell short of analysts' consensus estimates. Following this announcement, Chief Executive Officer Michael Massaro indicated the company would undertake a review of its operations, including significant staffing cuts—up to 10% of its workforce.

The financial outlook for 2025, which projected much lower revenue growth than previously indicated, raised concerns among investors. Analysts reacted swiftly, downgrading their assessments of Flywire and adjusting their stock price targets downward, a stark contrast to previous optimistic projections by the company's management.

Consequently, the stock price of Flywire fell dramatically by approximately 37% within a day, highlighting the severity of the situation for current shareholders.

Call to Investors

Pomerantz LLP is urging affected investors to consider joining the class action suit, which aims to recover damages for those who acted upon Flywire's alleged misleading representations. Investors interested in participating are encouraged to act quickly, as the deadline to appoint a lead plaintiff is September 23, 2025. Information related to the ongoing developments can be found on Pomerantz’s official website.

Established as a leading firm in offering support for corporate securities issues, Pomerantz has a long legacy of advocating for shareholder rights and recovering losses due to corporate misconduct. As the situation evolves, the legal proceedings against Flywire will be pivotal in determining accountability within corporate governance and investor transparency.

In these uncertain times, the ramifications of the increasing scrutiny on Flywire serve as a reminder of the vital importance of authentic corporate communication and the potential risks investors bear when trusting in misleading assurances from company officials.