#United States #New York #Pomerantz LLP #securities violations #Flywire Corporation

Pomerantz Law Firm Files Class Action Against Flywire Corporation

On August 16, 2025, Pomerantz LLP, a prominent law firm known for its advocacy in corporate litigation, announced the initiation of a class action lawsuit against Flywire Corporation (NASDAQ: FLYW) and select officers. The lawsuit was filed with the United States District Court for the Eastern District of New York, registered as case number 25-cv-04110.

Background of the Case

The class action represents a cohort of investors who purchased or acquired Flywire securities between February 28, 2024, and February 25, 2025. Investors are alleging that they suffered losses due to Flywire's failure to disclose various issues that significantly impacted its financial performance during this period. The suit targets violations of the federal securities laws under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Flywire's Business Model and Challenges

Flywire Corporation operates primarily as a technology and payments company, enabling payment processing across various sectors, including education, healthcare, and travel. The company has positioned itself particularly strongly in the education sector, where it has faced increasingly severe headwinds. As international student enrollment has dipped—driven by restrictive visa policies, particularly in Canada and Australia—Flywire reported a troubling outlook for its revenue.

The Canadian government had instituted intake caps on international student permits, leading to reduced enrollment and consequently impacting Flywire’s payment flows. Similarly, Australia had tightened its visa regulations, which also created adverse conditions for Flywire's operations. These factors raised serious questions about the sustainability of the company’s revenue growth often reported by its executives, notably during earnings calls and investor communications.

Allegations of Misrepresentation

Throughout the class period, the lawsuit alleges that Flywire executives made materially false statements about the company's financial condition and growth prospects. Key claims include failing to adequately address the serious implications of government regulations that were negatively influencing their business model. For instance, despite clear signs that international student enrollment was plummeting, company officials continued to assure investors of strong and sustainable revenue growth, leading many to believe the firm was insulated from external market pressures.

In a press release on February 25, 2025, Flywire announced disappointing financial results for the fourth quarter of 2024, showing a loss per share of $0.12, significantly missing market expectations. Moreover, during the ensuing conference call, executives notably adjusted the revenue projections downward, citing operational insufficiencies and acknowledged unforeseen challenges arising from macroeconomic conditions.

Impact on Investors and Market Reaction

The consequences of these revelations were immediate and severe. Following the disappointing results and the slashed revenue forecasts—determined to be down over 30% in key markets—the company’s stock price plummeted by approximately 37.36% in a single trading day. This substantial decline raised flags amongst analysts, many of whom swiftly downgraded their stock ratings and adjusted price targets downwards due to the disclosures. The pronounced volatility and loss in value prompted affected investors to seek legal recourse, culminating in this class action filing.

How Investors Can Get Involved

Investors who believe they have been affected by these events have until September 23, 2025, to apply for lead plaintiff status in the ongoing litigation. A copy of the full complaint can be accessed via Pomerantz’s website, and interested parties are encouraged to reach out to the firm for more information regarding the case.

Conclusion

Pomerantz LLP has long been recognized for its commitment to fighting for the rights of investors and the general public. The firm’s action against Flywire Corporation raises crucial questions about corporate governance and ethical responsibility in the management of publicly traded companies. As this case unfolds, it will likely be closely monitored by financial analysts and investor rights advocates alike, illustrating the ongoing vulnerabilities present in the realms of corporate finance and investor engagement.