Fly-E Group, Inc. Faces Securities Law Violation Lawsuit, Shareholders Urged to Act

Legal Troubles Await Fly-E Group, Inc.

In a significant legal development, Fly-E Group, Inc. (NASDAQ: FLYE) has come under fire for alleged violations of securities laws. The Gross Law Firm has issued an urgent notice urging shareholders who acquired FLYE shares during a specified class period to reach out regarding their potential rights and options.

The Allegations in Brief

The lawsuit centers around claims that Fly-E made overly optimistic and misleading statements concerning its products, particularly regarding the safety of its lithium batteries. These assertions reportedly masked serious concerns that affected the company's revenue from E-vehicles. Despite ambitious projections, consecutive quarterly reports revealed a troubling trend of declining sales and rising operational costs.

By August 14, 2025, the situation reached a tipping point when Fly-E filed a notification indicating the company could not meet its filing deadline for the first quarter of the 2026 fiscal year. This notification unveiled a staggering 32% reduction in net revenues, primarily caused by a decline in units sold. The company attributed this downfall to recent accidents involving its lithium battery products, specifically with E-Bikes and E-Scooters, which impacted consumer confidence and sales performance.

Impact on Shareholders and Stock Prices

The emergence of these realities had a devastating effect on Fly-E's stock prices. On August 14, the closing price stood at $7.76, yet it plummeted to a mere $1.00 per share the following day. This occurrence marked an alarming 87% decrease in just 24 hours, resulting in significant financial losses for shareholders.

Shareholders who purchased FLYE shares from July 15, 2025, to August 14, 2025, are encouraged to take action. The Gross Law Firm emphasizes that while not necessary to become a lead plaintiff, participation in the case could lead to recovery. Interested parties can register their information through the provided link, which allows for portfolio monitoring and keeps shareholders informed of the case's status.

Important Deadlines

All potential claimants should be aware that the deadline to register for participation in this class action lawsuit is November 10, 2025. Prompt registration is crucial for shareholders seeking to ensure their rights are protected.

The Role of The Gross Law Firm

The Gross Law Firm is a recognized name in class action lawsuits and has committed itself to advocate for investors' rights. The firm seeks compensation for those adversely affected by misled statements and unlawful business practices. Through this case, it aims to hold Fly-E accountable and promote more ethical business conduct in the corporate sphere.

For further assistance or to discuss the specifics of the case, shareholders are advised to reach out to The Gross Law Firm, located at 15 West 38th Street, 12th Floor, New York. The firm can be reached via phone at (646) 453-8903 or through their email address.

In conclusion, Fly-E Group, Inc. finds itself at a crossroads, facing scrutiny from both legal entities and investors. Shareholders are advised to stay informed and act swiftly in these pressing times as they navigate the fallout from this situation.