#United States #New York #Class Action #Pomerantz LLP #Flywire Corporation

Pomerantz Law Firm Files Class Action Against Flywire Corporation

On September 13, 2025, Pomerantz LLP, a well-regarded law firm specializing in class action suits, announced the filing of a class action lawsuit against Flywire Corporation, a prominent payments-enablement company traded on NASDAQ under the ticker FLYW. This legal action comes in response to significant alleged violations of federal securities laws by Flywire and certain key executives of the company.

The class action, which was filed in the United States District Court for the Eastern District of New York and is cataloged under the docket number 25-cv-04110, represents a group of investors who acquired Flywire securities during the stipulated class period from February 28, 2024, to February 25, 2025. The aim is to seek damages from the company for what is claimed to be misleading practices and statements regarding its financial health and business operations.

Investors’ Rights and Actions

Investors who purchased Flywire shares during the class period are encouraged to take action by seeking the appointment of a Lead Plaintiff before the deadline of September 23, 2025. Interested parties can obtain a copy of the complaint via Pomerantz's website and are advised to contact the firm’s representatives for further information or assistance.

Overview of Flywire Corporation

Flywire, with a diverse portfolio, operates internationally in the payments technology sector, providing services across numerous industries. Notably, the education sector constitutes a significant portion of Flywire’s business model, heavily reliant on international student enrollments. The company's operational revenue hinges on various financial metrics, including revenue net of ancillary services (RLAS) and measures adjusted for foreign exchange rates.

Recent Challenges Faced by Flywire

However, Flywire has recently faced a series of challenges that triggered investor concerns. In January 2024, the Canadian government introduced restrictions on international student permits, which diminished the flow of international students necessary for Flywire's revenue. Similarly, Australia tightened its international student visa regulations, directly impacting Flywire’s revenue potential.

Despite these adverse developments, Flywire's executives have reportedly assured stakeholders of the company's robust growth trajectory. For instance, even as late as November 2024, senior management asserted that Flywire remained delved in strong revenue growth, showcasing confidence in future performance projections.

The Allegations

Nevertheless, the complaint underscores that statements made by Flywire executives regarding the company’s financial sustainability have been misleading. According to the lawsuit, Flywire did not adequately disclose the impact that governmental visa policies would have on its operations, culminating in inflated expectations on the part of investors.

February 25, 2025, proved to be a pivotal day for Flywire, as the company released its fourth-quarter financial results, which failed to meet market expectations. The report disclosed a quarterly loss and several instances of revenue shortfall, leading CEO Michael Massaro to cite a challenging macroeconomic environment impacting the company significantly. This disclosure prompted a drastic decline in Flywire's stock price, falling by more than 37% following the announcement—an indication of the market's reaction to both the financial results and the disclosed operational difficulties.

Implications for Flywire

This class action lawsuit spotlights the increasing scrutiny corporate entities face regarding transparency and accountability in financial reporting. Pomerantz LLP has a long-standing history of advocating for investor rights, and this case may set a precedent for how companies communicate operational changes and their potential effects on stock performance.

As the lawsuit unfolds, Flywire and its executives will have to navigate these legal challenges while attempting to restore investor confidence and clarify their operational trajectory moving forward. With significant implications for stakeholders, including potential financial repercussions, the outcome will be pivotal for Flywire’s future and its standing in the payments technology landscape.