Pomerantz Law Firm Announces the Filing of a Class Action Against Flywire Corporation and Certain Officers - FLYW
Pomerantz Law Firm Announces the Filing of a Class Action Against Flywire Corporation and Certain Officers - FLYW |
| [27-July-2025] |
NEW YORK, July 27, 2025 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Flywire Corporation ("Flywire" or the "Company") (NASDAQ: FLYW) and certain officers. The class action, filed in the United States District Court for the Eastern District of New York, and docketed under 25-cv-04110, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Flywire securities between February 28, 2024 and February 25, 2025, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired Flywire securities during the Class Period, you have until September 23, 2025 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. [Click here for information about joining the class action] Flywire, together with its subsidiaries, operates as a payments-enablement and software company in the United States ("U.S.") and internationally. The Company's payment platform and network, as well as its vertical-specific software, purportedly facilitate payments between clients and customers in a variety of industries. Although Flywire has a wide range of clients across various verticals—i.e., markets encompassing a group of companies and customers that are all interconnected around a specific niche—its largest vertical is education, the volumes and revenue from which rely on international enrollments and student school preferences. Accordingly, Flywire's business in the education industry is of particular importance to investors and analysts, especially the Company's Americas market, consisting of the U.S. and Canada, as well as its Asia and Pacific region market, including Australia. To assess its financial performance in these markets, Flywire utilizes a number of non-GAAP financial measures important to investors, including, inter alia, revenue less ancillary services ("RLAS") and foreign exchange ("FX") neutral RLAS. In January 2024, the Canadian government began announcing intake caps on international student permit applications, thereby reportedly reducing the number of international students coming to Canada. This, in turn, resulted in a corresponding reduction in payment flows and an adverse effect on Flywire's business. Likewise, since late 2023, the Australian government has tightened international student visa rules through various measures, which have likewise had an adverse impact on the Company's business. Notwithstanding the foregoing permit- and visa-related headwinds, at all relevant times, Defendants consistently touted the sustainability of Flywire's revenue growth and financial condition, while downplaying the anticipated negative impacts of permit- and visa-related headwinds on the Company's business. For example, as late as November 2024, Defendants represented, among other things, that Flywire was and would remain a purported "Rule of 40" company with strong revenue growth, while indicating that, for full year ("FY") 2025, FX neutral RLAS growth year-over-year ("Y/Y") was expected to be in the low 20% range, that revenue growth in Canada would be relatively flat compared to 2024, and that Defendants observed merely an early moderation in the revenue growth rate in Australia. The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the strength and sustainability of Flywire's revenue growth was overstated; (ii) the negative impact that permit- and visa-related restrictions were having and were likely to have on Flywire's business was understated; and (iii) as a result, Defendants' public statements were materially false and misleading at all relevant times. On February 25, 2025, Flywire issued a press release announcing its fourth quarter ("Q4") and FY 2024 financial results. Therein, for Q4 2024, the Company reported a loss per share of $0.12, missing consensus estimates by $0.12, and revenue of $117.6 million, missing consensus estimates by $1.25 million. In discussing these results, Flywire's Chief Executive Officer Defendant Michael Massaro ("Massaro") blamed "a complex macro environment with significant headwinds[.]" Defendant Massaro also announced that the Company would "undertak[e] an operational and business portfolio review" and certain "efficiency measures" including "a restructuring, which impacts approximately 10% of our workforce." Flywire's Chief Financial Officer Defendant Cosmin Pitigoi ("Pitigoi") also advised that "[f]or our 2025 financial outlook, we project [RLAS] growth of 10-14% on an FX-neutral (constant currency) basis"—significantly less than low 20% range previously provided to investors. The same day, Flywire held a conference call with investors and analysts to discuss its Q4 and FY 2024 results. During the call, Defendants revealed that the Company'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 our big four geographic markets," with "continued visa policy restrictions" anticipated in 2025. Significantly, Defendant Pitigoi disclosed that Defendants "expect revenue in both [Canadian and Australian] markets to be down over 30% [Y/Y]" because of "recent policy changes" and "new visa rules [that] are starting to affect demand[,]" while also citing headwinds in the Company's U.S. market on similarly shifting visa trends. The same and the following day, multiple analysts downgraded their recommendation on Flywire and/or cut their price target ("PT") on the Company's stock, citing its poor Q4 and FY 2024 results. Multiple analysts also noted that Flywire's forecasted FY 2025 revenue growth, particularly with respect to U.S., Canadian, and Australian markets, was unexpected and/or stood in sharp contrast to Defendants' prior representations. Following the foregoing disclosures and analyst downgrades and PT cuts, Flywire's voting common stock price fell $6.59 per share, or 37.36%, to close at $11.05 per share on February 26, 2025. Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com. Attorney advertising. Prior results do not guarantee similar outcomes. CONTACT:
SOURCE Pomerantz LLP | ||
Company Codes: NASDAQ-NMS:FLYW |
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