Investors in Flywire Corporation (FLYW) urged to explore potential Securities Fraud Class Action by Law Offices of Frank R. Cruz
Class Action Lawsuit Filed Against Flywire Corporation for Securities Fraud
A class action lawsuit has been filed against Flywire Corporation (FLYW) for securities fraud between February 28, 2024, and February 25, 2025. The lawsuit alleges that the company and certain officers made false and misleading statements about the sustainability of Flywire’s revenue growth and the impact of permit- and visa-related restrictions on its business.
According to the complaint, Flywire overstated the strength and sustainability of its revenue growth while understating the negative effects of permit and visa issues on its operations. These omissions rendered the company's public statements materially false and misleading during the class period.
On February 25, 2025, Flywire announced disappointing financial results for Q4 and FY 2024. The company revealed that revenues in key markets such as Canada and Australia were expected to decline over 30% year-over-year due to recent policy changes and new visa rules affecting demand. Similar visa-related challenges were noted in the U.S. market. This disclosure triggered analyst downgrades and price target cuts, resulting in Flywire’s stock price dropping 37.36% on February 26, 2025.
The lawsuit further alleges that Flywire’s business in the education sector had significantly deteriorated due to worsening permit- and visa-related headwinds, including double-digit declines in student visa issuance in the big four geographic markets.
Investors who purchased Flywire securities between February 28, 2024, and February 25, 2025, have until September 23, 2025, to file a lead plaintiff motion. The press release, published by Business Wire, provides contact information for investors who wish to learn more about the class action lawsuit against Flywire Corporation or have questions about their rights or interests.
As part of the lawsuit, Flywire announced a restructuring plan that included a 10% reduction in its workforce and reduced its 2025 guidance. The press release is considered Attorney Advertising in some jurisdictions.
In summary, the class action alleges that Flywire misrepresented its financial condition and business prospects by failing to properly disclose permit and visa-related headwinds, which significantly impacted its revenue growth and stock price during the specified period.
The class action lawsuit against Flywire Corporation suggests that the company, while discussing its financial results and growth prospects, failed to disclose the negative impact of permit- and visa-related restrictions on their business and investments, which might have influenced financially motivated individuals. The alleged omissions, according to the complaint, concerned the stronger-than-expected decline in revenues in key markets, deterioration in the education sector, and student visa issuance decline in significant geographic markets, leading to a harsh impact on Flywire Corporation's stock price during the specified period.
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