Fly-E Group Faces Lawsuit Over Alleged Securities Violations Affecting Investors and Shareholders

Fly-E Group Inc. Sued for Securities Violations

Fly-E Group, Inc. (NASDAQ: FLYE) is currently embroiled in a significant lawsuit concerning alleged violations of securities laws. This legal action was initiated by The Gross Law Firm, which is calling on shareholders who purchased FLYE shares during the class period to come forward. This lawsuit is crucial for those who may have incurred losses due to misleading corporate communications.

Allegations Against Fly-E Group

The allegations state that Fly-E Group's management misled investors by issuing overly optimistic statements about the company's prospects while simultaneously failing to disclose critical information regarding safety issues related to their lithium batteries. These safety concerns have reportedly impacted sales of their electric vehicles (E-vehicles).

According to the details outlined in the complaint, Fly-E Group was accused of making inflated long-term revenue projections that did not align with the actual performance of the company. While making lofty claims about future growth, the company's sales figures started to dwindle, and operational costs began to rise. This discrepancy ultimately led to a failure in meeting their revenue forecasts.

On August 14, 2025, Fly-E Group revealed the truth by submitting a Notification of Inability to Timely File the Form 10-Q, citing a staggering 32% drop in net revenues. This decline was attributed directly to a reduction in total units sold, connected to recent incidents involving lithium battery failures in their E-Bikes and E-Scooters. Immediately following this announcement, the stock price of Fly-E plummeted from $7.76 to $1.00 per share—the steepest drop recorded at approximately 87% in just one day.

Next Steps for Shareholders

The lawsuit has a deadline for shareholders, set for November 10, 2025, for those looking to register their information in order to potentially serve as a lead plaintiff in the case. The Gross Law Firm emphasizes the importance of these shareholders not delaying their registration as it could affect their ability to participate in potential recovery efforts. As part of this legal process, registered shareholders will receive updates throughout the case’s lifecycle, particularly regarding any developments that could impact their investment or compensation rights.

Why Choose The Gross Law Firm?

The Gross Law Firm is a well-known name in the realm of class action lawsuits, dedicated to protecting investors' rights who may fall victim to deceitful business practices and misinformation. Their commitment to maintaining corporate accountability is at the forefront of their mission. By helping clients hold companies responsible for false or misleading statements, especially in instances where such claims lead to significant financial losses, The Gross Law Firm aims to create a more transparent business environment. Attorney advertising practices are applied, however, past successes do not guarantee similar outcomes in this case.

For those who purchased shares of Fly-E during the identified period, it would be prudent to consult with The Gross Law Firm to explore options for a potential recovery of losses sustained from these events. Shareholders can reach out to the firm for further information and guidance on how to navigate this complex litigation process.

Contact Information

For any inquiries or further assistance, The Gross Law Firm can be reached at their office located at 15 West 38th Street, 12th floor, New York, NY, or through phone at (646) 453-8903. Interested parties are encouraged to take timely action to secure their interests and explore their rights in this ongoing legal situation.

In sum, the case against Fly-E Group serves as a critical reminder of the responsibilities companies hold towards their investors, and the potential consequences of failing to uphold these obligations.