#United States #New York #Class Action #Pomerantz Law Firm #Flywire Corporation

Class Action Lawsuit Against Flywire Corporation

In a recent announcement, the Pomerantz Law Firm has initiated a class action lawsuit against Flywire Corporation (NASDAQ: FLYW) and several of its senior officers. The lawsuit, which has been filed in the United States District Court for the Eastern District of New York, affects all individuals and entities, except for the defendants, that purchased or otherwise acquired Flywire securities during a defined class period, specifically from February 28, 2024, to February 25, 2025. The legal action aims to obtain compensation for damages associated with the alleged violations of federal securities laws outlined in Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.

Investors' Opportunity for Participation

For those who acquired Flywire securities during the specified period and wish to participate in the case, they must express their intentions by September 23, 2025. Interested parties can find a copy of the complaint on Pomerantz's website and are encouraged to get in touch with Danielle Peyton at the firm for further discussion regarding participation in this legal action.

Background on Flywire Corporation

Flywire Corporation, alongside its subsidiaries, operates primarily as a payments-enablement and software organization with a broad international presence. The company has developed payment solutions designed to facilitate monetary transactions across a variety of sectors. Education remains Flywire's largest vertical, relying heavily on international student enrollments to drive revenue and transaction volumes. Therefore, the company's performance within education, particularly in crucial geographic markets such as the United States, Canada, and the Asia-Pacific region, is of significant concern to investors and market analysts alike.

Recently, however, Flywire's operations have faced difficulties stemming from updated regulations affecting international student permits and visas. In January 2024, the Canadian government implemented intake caps on student permit applications, leading to a decrease in incoming international students and an immediate impact on Flywire's revenue flow. Additionally, stricter visa rules were introduced in Australia, further exacerbating the company’s challenges in maintaining its revenue targets.

Allegations Against the Defendants

Throughout the relevant period, the defendants allegedly made several misleading statements regarding Flywire’s financial health and future performance prospects, despite the evident adverse conditions affecting the education market. For instance, leading up to November 2024, the defendants claimed that Flywire maintained a robust growth trajectory and could expect significant annual revenue growth. However, the lawsuit purports that such statements were misleading and concealed the true impact of ongoing regulatory challenges affecting international student recruitment within key markets.

Financial Results and Market Response

On February 25, 2025, Flywire released its financial results for the fourth quarter and the entirety of the fiscal year 2024, revealing disappointing outcomes that led to concerns among investors. The reported loss per share of $0.12 drastically missed analysts’ expectations, and revenue fell short by $1.25 million. During the resultant earnings call, Flywire's CEO, Michael Massaro, attributed these results to a challenging macro environment, announcing a business portfolio review and operational restructuring affecting about 10% of the workforce.

The financial outlook provided by Chief Financial Officer Cosmin Pitigoi also represented a significant downward revision of Flywire’s anticipated growth, projecting revenue growth of only 10-14%—a stark contrast to prior estimates that anticipated a low 20% growth rate for the year.

Following the disappointing financial announcements and the downgrading of stock recommendations by various analysts, Flywire's stock experienced a sharp decline, falling nearly 37% to close at $11.05 on February 26, 2025.

About Pomerantz Law Firm

Pomerantz LLP is well-regarded as one of the premier firms specializing in corporate, securities, and antitrust class litigation. With more than 85 years of experience, the firm has secured billions in damages on behalf of class members, continuing a legacy of advocating for victims of corporate negligence. For more information on joining the class action or to consult on the matter, potential participants can visit their official website.

Conclusion

As Flywire Corporation navigates these turbulent waters, the unfolding situation stands as a critical reminder of how allegations of misconduct and regulatory changes can significantly impact investor confidence and a company’s financial standing. Interested individuals who may be affected by Flywire's operational challenges are encouraged to follow the progression of the class action and consider their options concerning potential claims.