A class action lawsuit was filed against Flywire Corp. (FLYW) by Levi & Korsinsky on July 25, 2025. The plaintiffs (shareholders) alleged that they bought FLYW stock at artificially inflated prices between February 28, 2024, and February 25, 2025 (Class Period) and are now seeking compensation for their financial losses. Investors who bought Flywire stock during that period can click here to learn about joining the lawsuit.
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Flywire is a global payment enablement and software company. It uses its proprietary global payments network, next-generation payments platform, and vertical-specific software to facilitate significant and complex transactions for its clients and their customers.
Flywire’s claims about the sustainability of its revenue growth are at the heart of the current complaint.
Flywire’s Misleading Claims
According to the lawsuit, Flywire and four of its current and/or former senior officers (the Defendants) repeatedly made false and misleading public statements throughout the Class Period. In particular, they are accused of omitting truthful information about the Company’s revenue growth, and the effect of permit and visa-related restrictions on its business, from SEC filings and related material.
During the Class Period, Flywire mentioned in an annual report that declining enrollment, tuition pressures, or higher expenses in the education sector could lower demand for its solutions.
Moreover, in the same annual report dated February 28, 2024, Flywire’s CEO and then-CFO affirmed that the report was accurate and not misleading. They attested that the report “does not contain any untrue statement of a material fact or omit to state a material fact…”
Finally, in an August 6, 2024 press release, the CEO highlighted that second-quarter results showed strong performance, with over 200 new client signings, 22% revenue growth, and a 26% increase in RLAS (revenue less adjusted sales) year-over-year, despite challenges from Canadian government actions on student study permits.
However, subsequent events (detailed below) revealed that the defendants had failed to inform investors about the negative impact that permit- and visa-related restrictions were having and were likely to have on Flywire’s business.
Plaintiffs’ Arguments
The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the company’s business practices and prospects during the Class Period. Importantly, the defendants are accused of misleading investors about the strength and sustainability of Flywire’s revenue growth.
The information became clear on February 25, 2025, when Flywire reported weak results for its fourth quarter and fiscal 2024. The company reported a loss per share of $0.12, missing estimates by $0.12, and revenue of $117.6 million, falling short of estimates by $1.25 million.
Furthermore, Flywire’s CEO attributed the poor results to “a complex macro environment with significant headwinds.” During a related conference call, the CFO disclosed that Flywire expects revenue in both Canadian and Australian markets to be down over 30% year-over-year because of recent policy changes and new visa rules that are starting to affect demand. Following the news, FLYW stock plunged 37.4% the same day.
To conclude, the defendants failed to inform investors about the negative impact the changing permit- and visa-related restrictions were expected to have on Flywire’s financial performance. Due to these issues, FLYW stock has lost 37% over the past year.
