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

Pomerantz Law Firm Takes Legal Action Against Flywire Corporation

On July 31, 2025, Pomerantz LLP announced the initiation of a class action lawsuit against Flywire Corporation, alongside certain officers of the company. The lawsuit was filed in the United States District Court for the Eastern District of New York and is indexed as case number 25-cv-04110. The class action is on behalf of individuals and entities, excluding the defendants, that purchased or acquired securities of Flywire from February 28, 2024, through February 25, 2025 (the "Class Period"). This legal action seeks to recover damages resulting from breaches of federal securities laws as outlined in Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.

Investors who bought Flywire securities during the Class Period have until September 23, 2025, to apply to the Court to be appointed as Lead Plaintiff for the class. A detailed copy of the complaint can be accessed at Pomerantz Law Firm. Interested parties may contact attorney Danielle Peyton at [email protected] for further discussions, providing their contact details and share acquisition specifics.

Understanding Flywire's Business Context

Flywire operates as a payments-enabling and software company providing services both domestically and internationally. The company’s payment platform is designed to facilitate financial transactions across various industries, with a notable focus on the education sector. As international enrollments and student preferences play a critical role in Flywire's revenue generation, it’s especially significant for investors and analysts to stay informed about the company’s performance in this arena.

However, beginning in January 2024, changes in Canadian regulations imposed caps on international student permit applications, adversely affecting Flywire's operations by reducing payment flows. Similarly, tightened visa regulations from the Australian government since late 2023 have also had a negative impact on Flywire’s business model.

Despite these challenges, company executives continued to convey confidence about the sustainability of revenue growth, suggesting that impacts from regulatory changes were manageable. For example, in November 2024, executives maintained that Flywire was poised to remain a "Rule of 40" company with strong growth prospects, projecting revenue increases of approximately 20% year-over-year for FY 2025.

Allegations of Misleading Statements

The complaint alleges that throughout the Class Period, Flywire's executives made misleading claims regarding the company’s business health, including overstating the sustainability of revenue growth and downplaying the negative repercussions of permit and visa-related restrictions. Specifically, it was claimed that the company failed to disclose significant declines in international student enrollments which would reveal increasing strain on its financial performance.

Following Flywire’s announcement on February 25, 2025, regarding its Q4 and FY 2024 financial results, significant revelations concerning deteriorating business performance came to light. The company reported a loss per share of $0.12, below consensus expectations, and missed revenue targets with figures of $117.6 million. During a subsequent investors' call, CEO Michael Massaro attributed declining results to adverse macroeconomic conditions and indicated that Flywire was entering into an operational review, laying off around 10% of its workforce as part of restructuring efforts.

Market reactions were swift; on February 26, the stock price plummeted by over 37%, closing at $11.05 per share following the disappointing disclosure of Q4 results and the subsequent downgrades issued by multiple analysts.

The Role of Pomerantz LLP

Pomerantz LLP, recognized for its role in corporate law, securities, and antitrust class actions, has a strong history of advocating for victims of corporate misconduct and seeking justice in cases of securities fraud. Founded by Abraham L. Pomerantz, known as the pioneer of securities class action litigation, the firm has recovered substantial financial awards for its clients over its extensive 85-year history.

For investors impacted by the alleged practices of Flywire Corporation, the class action suit represents an opportunity to pursue restitution and hold the company accountable for its conduct during a crucial period in its operations.

Conclusion

As this case unfolds, it highlights the risks inherent in the corporate world, particularly concerning investor protection and transparency. Stakeholders are encouraged to remain vigilant and informed regarding developments in the Flywire case and consider the implications of such legal actions on the broader landscape of corporate governance.