1. A class action lawsuit filed against Fly-E for misleading investors. 2. Fly-E reported a 32% revenue decline due to market challenges. 3. The stock plummeted 87% from $7.76 to $1.00 after revelations. 4. Allegations include false revenue projections and minimalizing lithium battery risks. 5. Participants eligible for class action can serve as lead plaintiffs.
The significant drop in share price reflects severe investor trust erosion stemming from allegations and financial misreporting.
The ongoing class action lawsuit is a critical event that could further impact FLYE's financial stability and public perception.
The immediate reaction to the lawsuit and financial disclosures will likely continue to affect share prices in the near term.
SAN DIEGO, Sept. 8, 2025 /PRNewswire/ -- Robbins LLP informs stockholders that a class action was filed on behalf of persons and entities that purchased or otherwise acquired Fly-E Group, Inc. (NASAQ: FLYE) securities between July 15, 2025 and August 14, 2025. Fly-E Group, Inc., through its subsidiaries, designs, installs, and sells smart electric motorcycles, electric bikes, electric scooters, and related accessories under the Fly E-Bike brand in the United States, Mexico, and Canada.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Fly-E Group, Inc. (FLYE) Misled Investors About its Business Prospects
According to the complaint, during the class period, defendants created the false impression that they possessed reliable information pertaining to the Company's projected revenue outlook and anticipated sales. In truth, Fly-E's optimistic revenue goals and demand for its EV products and services fell short of reality; defendants continually praised Fly-E's brand reputation in the industry, cost reductions and favorable pricing from suppliers as a key component for Fly-E's ability to grow its sales network, while simultaneously minimizing risks associated with its lithium battery, supply chain changes and the regulatory environment and possible demand fluctuations for its E-Bikes and E-Scooters.
On August 14, 2025, Fly-E filed with the SEC a form NT 10-Q: Notification of inability to timely file Form 10-Q for the first quarter of fiscal year 2026. The filing revealed a significant 32% decrease in Fly-E's net revenue compared to the same period in 2024. Notably, defendants stated that the primary driver for the revenue decrease was a decline of "total units sold" as customers were less inclined to purchase E-Bikes due to an "increasing number of lithium battery explosion incidents in New York". Although there was mention of sector wide lithium battery incidents in the 10-K filed on July 15, 2025, none were specific to Fly-E's lithium battery. Further, Defendants reiterated the fact that the EV industry is "subject to extensive environmental, safety and other laws and regulations, which include products safety and testing, as well as battery safety and disposal." On this news, the price of Fly-E's declined dramatically, from a closing market price of $7.76 per share on August 14, 2025, to $1.00 per share on August 15, 2025, a decline of about 87% in the span of just a single day.
What Now: You may be eligible to participate in the class action against Fly-E Group, Inc. Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.
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SOURCE Robbins LLP