1. FLYE faces investigation for potential federal securities law violations. 2. Company reported a 32% decline in quarterly revenues due to product issues. 3. Stock plummeted 87.1% after the revenue announcement, closing at $1.00 per share. 4. Future revenue expected to decline due to ongoing safety incidents and store closures.
The significant drop in revenue and stock price indicates severe losses for investors and diminishes market confidence. Historical parallels can be drawn to similar collapses in companies facing litigation or severe operational setbacks.
The investigation's disclosure coinciding with a catastrophic financial report signifies critical investor concern, greatly impacting FLYE's market position.
Immediate impacts are evident from the recent stock drop; however, effects could linger if investigations prevail, reminiscent of Tesla's recalls affecting stock prices.
The Law Offices of Frank R. Cruz announces an investigation of Fly-E Group, Inc. ("Fly-E" or the "Company") (NASDAQ: FLYE) on behalf of investors concerning the Company's possible violations of federal securities laws.
IF YOU ARE AN INVESTOR WHO LOST MONEY ON FLY-E (FLYE), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.
What Is The Investigation About?
On August 14, 2025, Fly-E filed a Notification of inability to timely file Form 10-Q for the first quarter of fiscal year 2026, revealing a 32% year-over-year decline in net revenues, primarily driven by decreased unit sales following multiple lithium-battery accidents involving its E-Bikes and E-Scooters. The Company further warned that these incidents, along with retail store closures, would continue to weigh on future revenue.
On this news, Fly-E's stock price fell $6.76, or 87.1%, to close at $1.00 per share on August 15, 2025, thereby injuring investors.
Contact Us To Participate or Learn More:
If you purchased Fly-E securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
The Law Offices of Frank R. Cruz,
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Century City, California 90067
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The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz
310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com