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

Pomerantz Law Firm Takes Action Against Flywire Corporation

Pomerantz LLP, a prominent law firm known for its focus on securities class actions, has announced the filing of a major class action lawsuit against Flywire Corporation, a company publicly traded on NASDAQ under the ticker FLYW. This lawsuit, stemming from alleged breaches of federal securities laws, was filed in the United States District Court for the Eastern District of New York on September 8, 2025, under docket number 25-cv-04110. The action specifically targets Flywire and its key executives for their role in misleading investors regarding the company’s health and growth prospects, particularly during the class period from February 28, 2024, to February 25, 2025.

The lawsuit was initiated on behalf of investors who acquired Flywire securities during the specified timeframe and are seeking damages due to negative outcomes linked to what they claim were false statements made by the company's executives. Investors have until September 23, 2025, to consider petitioning the court to be appointed as Lead Plaintiff, a position that allows them to actively participate in the legal proceedings.

Background of Flywire Corporation

Flywire operates as a payment enablement and software company with a wide-ranging network designed to facilitate payments across various industries, both domestically in the U.S. and internationally. A significant portion of Flywire's business relies on the education sector, which underscores its importance to investors and market analysts. This sector has shown substantial growth potential, driven principally by international student enrollments. However, recent regulatory changes in Canada and Australia regarding international student visas may have jeopardized this growth trajectory, adversely impacting Flywire’s operations.

The Class Action Details

The primary allegations in the class action revolve around claims that Flywire’s executives grossly overstated the sustainability and strength of the company's revenue growth. The lawsuit asserts that serious adverse impacts stemming from incoming permit and visa regulations were either misrepresented or entirely omitted from public disclosures, greatly misleading investors.

For instance, while the market was reassured of the company’s robust financial performance as recently as November 2024, significant downstream effects from tightening visa regulations were downplayed. The lawsuit articulates that Flywire had forecasted a low 20% year-over-year growth for 2025, but the unfolding of the fiscal year revealed a starkly different reality.

The Major Challenges Faced

A notable shift occurred in January 2024 when the Canadian government slashed the number of international student permit applications, leading to a direct negative impact on Flywire’s revenue streams. Similar tightening of visa regulations in Australia only compounded the challenges facing the company. Further complicating matters, Flywire reported a loss of $0.12 per share for the fourth quarter of 2024, falling short of investor expectations and causing a swift decline in stock price—the shares dropped approximately 37.36% the following day. Prominent analysts responded with downgrades following these disclosures, calling into question Flywire's previously touted growth prospects.

Next Steps for Investors

Investors impacted by these events and who purchased Flywire securities during the class action period are advised to review the legal implications and their rights under the proposed class action. A copy of the complaint is available for review at Pomerantz’s website, and additional details can be discussed with Danielle Peyton, who is handling the case.

Pomerantz LLP, which operates globally, is recognized for its comprehensive approach to representing victims of securities fraud, corporate misconduct, and violations of fiduciary duty. The firm continues to build on its storied legacy, advocating for accountability within the corporate framework and striving for justice on behalf of investors who have fallen victim to misrepresentation.

In conclusion, this class action lawsuit not only holds Flywire accountable but also serves as a crucial reminder for investors to remain vigilant about corporate statements and potential risks related to the evolving regulatory landscape that can significantly impact business operations. Stakeholders must act promptly to ensure their voices are heard in the unfolding legal proceedings.