Fly-E Group, Inc. (FLYE) Securities Class Action Lawsuit Update [October 9, 2025]

Introduction to Fly-E Group, Inc. (FLYE) Securities Class Action Lawsuit

A securities fraud class action has been filed against Fly-E Group, Inc. (NASDAQ: FLYE) covering July 15, 2025 through August 14, 2025, inclusive. Investors allege the company touted revenue growth and brand strength while concealing material adverse facts about the safety of its lithium batteries and the toll on sales. The story turned on August 14, 2025, when Fly-E filed a Form NT 10-Q revealing a 32% drop in net revenues, primarily due to fewer units sold and "recent lithium-battery accidents involving E-Bikes and E-Scooters," with expectations of further retail declines. The next trading day, August 15, 2025, Fly-E's stock price declined dramatically, falling from $7.76 to $1.00 per share (about an 87% single-day decline). Shareholders say they bought at inflated prices and were harmed when the truth emerged.

Fly-E Group, Inc. (FLYE) Securities Lawsuit Case Details

Case Name: Kurt v. Fly-E Group, Inc., et al.
Case No.: 1:25-cv-05017
Jurisdiction: U.S. District Court, Eastern District of New York
Filed on: September 8, 2025

Fly-E Group, Inc. (FLYE) Company Profile

Fly-E designs, installs, and sells smart electric motorcycles, e-bikes, e-scooters, and related accessories under the Fly E-Bike brand across the U.S., Mexico, and Canada, and provides repairs and maintenance. The company reports 19 U.S. retail stores and one in Canada, positions itself as a leading urban mobility provider for New York City delivery workers, and notes over 67 new products launched since 2018.

Fly-E Group, Inc. (FLYE) Securities Lawsuit Class Period

July 15, 2025–August 14, 2025, inclusive

All investors who purchased or otherwise acquired Fly-E securities during the Class Period may be eligible to join the Fly-E Group, Inc. (FLYE) class action lawsuit.

Allegations in the Fly-E Group, Inc. (FLYE) Securities Class Action Lawsuit

The complaint targets Fly-E Group, Inc., Chief Executive Officer Zhou Ou, and Chief Financial Officer Shiwen Feng. According to investors, defendants told a growth story while assuring the market of brand strength and innovation, creating the impression they had reliable visibility into revenue and demand.

On July 15, 2025, in the company's Form 10-K, defendants stated that Fly-E had "a strong brand reputation for consistent delivery of high-quality EV products and excellent customer service," claiming delivery workers in New York City recognized and trusted the brand, establishing a loyal customer base. That same filing asserted Fly-E "continue[d] to offer innovative, differentiated products," highlighting launches of over 67 new products and upgrades to battery technology. The message continued that day in a press release where CEO Zhou Ou said the company was "positive about our growth prospects," focused on "improving product safety," and investing in innovation to prepare Fly-E "for sustained long-term growth."

During this period, the complaint alleges defendants created a false impression that they possessed reliable information about projected revenue and anticipated sales, while minimizing risks tied to the company's lithium batteries, supply chain changes, regulation, and demand fluctuations. Investors allege these statements omitted material facts about safety issues that were taking a material toll on sales.

The Truth Emerges

On August 14, 2025, the truth began to surface when Fly-E filed a Form NT 10-Q, a notification that it could not timely file its quarterly report. In that filing, the company disclosed a substantial 32% decrease in net revenues "primarily driven by a decrease in total units sold," attributing the decline to "recent lithium-battery accidents involving E-Bikes and E-Scooters." Defendants also stated they expected a further decrease in retail sales revenue for fiscal year 2026 due to lithium battery incidents and retail store closures.

These revelations contradicted the July 15, 2025 assurances about brand reputation, innovation, and growth prospects. The NT 10-Q further attributed the primary driver of the revenue decrease was fewer units sold as customers were less inclined to purchase e-bikes due to an "increasing number of lithium-battery explosion incidents in New York."

Market Reaction

The market reacted immediately following the August 14, 2025 disclosure. On August 15, 2025, Fly-E's stock fell from a prior close of $7.76 to $1.00 per share, a single-day decline of about $6.76, or approximately 87%. Investors and analysts reacted to the company's revelations as the share price declined dramatically.

Next Steps

• Submissions for lead plaintiff are due November 10, 2025. 
• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.
• The Court will then consider motion for class certification.
• The Court will later consider a Motion to Dismiss.

To learn if you are eligible for recovery under the FLYE securities class action lawsuit, visit the case submission page here.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.