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

Pomerantz Law Firm Takes Action Against Flywire Corp

In a significant legal move, Pomerantz LLP has announced the filing of a class action lawsuit against Flywire Corporation, a payment solutions company traded on NASDAQ under the ticker FLYW. The lawsuit originated in the United States District Court for the Eastern District of New York and seeks to represent all individuals and entities who acquired Flywire securities between February 28, 2024, and February 25, 2025, seeking restitution for alleged violations of federal securities laws.

The crux of the lawsuit revolves around claims that Flywire, along with certain executives, made false or misleading statements regarding the company’s business operations and financial stability. Specifically, the class action claims that Flywire overstated its revenue growth and the sustainability of its financial performance, while downplaying significant challenges related to international student permits and visas that have adversely affected its revenue streams in key markets such as Canada and Australia.

Flywire operates a payment platform designed to facilitate transactions across various sectors, with a particular emphasis on the education industry, which constitutes its largest market segment. Recent governmental changes in Canada and Australia regarding international student applications have reportedly led to decreased enrollment numbers and, subsequently, reduced payment flows through Flywire’s systems. This has raised concerns among investors regarding the company’s financial viability moving forward.

During the Class Period, Flywire executives continued to assure stakeholders of the company's robust revenue growth. They characterized Flywire as a “Rule of 40” company, expecting strong revenue growth even in light of emerging challenges. However, following a disappointing financial report on February 25, 2025, investors learned of the negative impact that strict international student visa regulations were having on Flywire's business model. In the announcement, executives indicated that the company had experienced a significant decline in revenue—specifically projecting a year-over-year revenue drop of over 30% in Canadian and Australian markets due to “recent policy changes.”

The class action complaint asserts that misleading statements made by Flywire’s management included a minimization of the challenges posed by the permit and visa limitations that were affecting their core market. Furthermore, Flywire's projections for revenue growth were significantly adjusted downward after initially optimistic forecasts.

As a result of this series of events, Flywire's stock price suffered a dramatic drop—an outcome reflective of the wider investor sentiment that emerged after the financial disclosures. Analysts swiftly adjusted their outlooks for Flywire, downgrading the stock and adjusting price targets in response to the shocking revelations regarding the company’s deteriorating market position.

The Pomerantz Law Firm is well-regarded in the field of securities litigation and has a history of advocating for investors who have experienced financial losses due to corporate misconduct. With over 85 years of experience in the industry, the firm has secured billions in damages for class members affected by securities fraud. The firm’s founder, Abraham L. Pomerantz, is known as a pioneer of securities class actions, establishing a legacy of fighting for justice for individuals negatively impacted by fraudulent practices in the financial markets.

As the legal proceedings unfold, the firm encourages affected investors to step forward and seek classification as Lead Plaintiffs in the case. Interested parties can obtain further information and copies of the complaint at www.pomerantzlaw.com.

Overall, the situation surrounding Flywire highlights the risks investors face in the dynamic landscape of the securities market, especially where regulatory changes can have immediate and profound impacts on company performance. Stakeholders are advised to monitor this case closely, as the outcomes may set precedents in the realm of securities litigation, particularly in relation to corporate transparency and accountability.

For a detailed discussion and to understand the steps you could take if you are affected, contact Danielle Peyton at Pomerantz LLP.