#United States #New York #Class Action #Pomerantz Law #Spirit Aviation

Pomerantz Law Firm Files Class Action for Spirit Aviation Investors

On October 23, 2025, the Pomerantz Law Firm announced that it has initiated a class action lawsuit on behalf of investors in Spirit Aviation Holdings, Inc. (OTCMKTS: FLYYQ). This lawsuit is significant as it pertains to a group of individuals and entities that purchased securities of Spirit during the period between May 28, 2025, and August 29, 2025, a timeframe referred to as the 'Class Period.' This lawsuit has been filed in the United States District Court for the Southern District of Florida, under docket number 25-cv-61959.

The class action seeks to recover damages as a result of the alleged violations of federal securities laws. Specifically, it addresses the claims made by the company’s top officials which have reportedly misled investors regarding the company’s financial stability and operational efficacy post-bankruptcy.

Background on Spirit Aviation Holdings

Spirit Aviation is recognized as the parent company of Spirit Airlines, LLC, which is an ultra-low-cost carrier operating in the U.S., Latin America, and the Caribbean. The company's journey has been tumultuous, as Spirit's predecessor, Spirit Airlines, Inc., filed for Chapter 11 bankruptcy protection in November 2024. This move was prompted by years of escalating losses and fierce competition in the airline sector.

By March 2025, the Corporate Debtors satisfied preconditions necessary for a pre-arranged Chapter 11 plan of reorganization. Consequently, Spirit emerged as the new entity leading the restructure, with the former Spirit Airlines transitioning into a wholly-owned subsidiary.

With the potential for a healthy restart, Spirit announced its common stock would soon be listed on NYSE American under the ticker symbol 'FLYY.' However, this optimism was soon overshadowed by troubling reports.

Allegations in the Lawsuit

Throughout the Class Period, it is alleged that the executives misrepresented Spirit's financial health and business prospects. Reports surfaced claiming that:
1. Spirit was at significant risk of not being able to meet its financial obligations.
2. They faced a probable return to Chapter 11 bankruptcy protection within months.
3. Admirations regarding improvements in the company’s financial position were exaggerated, with adverse market conditions underestimated.

The pivotal moment came on August 11, 2025, when Spirit released a quarterly report that raised major concerns about its ability to sustain operations. In this report, Spirit stated, “there is substantial doubt as to the Company's ability to continue as a going concern within 12 months,” citing market conditions and financial obligations that were not being met.

According to sources, this news led to a drastic fall in the stock, plummeting by over 40% to close at $2.10 per share on August 12, 2025. Furthermore, on August 29, the situation intensified when Spirit announced its voluntary petition for Chapter 11 bankruptcy, with an implication that shares would eventually be rendered worthless as part of the restructuring process.

The stock became suspended on September 2, 2025, after the NYSE initiated delisting proceedings, which resulted in a staggering drop of 58.2% in share price the next trading day, solidifying a series of unfortunate events for investors.

How to Participate

Investors who acquired Spirit securities during the specified Class Period now face imminent deadlines to act. Those wishing to serve as Lead Plaintiffs must express their interest by December 1, 2025. Complete documentation and details regarding the class action can be found at http://www.pomerantzlaw.com. Contact information for inquiries includes contacting Danielle Peyton at [email protected] or by phone at 646-581-9980.

Conclusion

Pomerantz LLP has established itself as a leading name in corporate and securities class litigation, advocating for the rights of investors plagued by securities fraud and corporate misconduct. This ongoing lawsuit serves as a reminder of the complex landscape of securities investment and the potential repercussions of corporate governance failures. Investors affected by Spirit's recent downturn should remain informed, as the ramifications of this lawsuit unfold.