Fly-E Group Hit with Class Action Lawsuit Over Lithium Battery Safety Issues
Fly-E Group (FLYE) faces a class action lawsuit alleging misleading statements about the safety of its lithium batteries, causing significant stock decline.Summary
Fly-E Group (FLYE) is the subject of a class action lawsuit filed on September 8, 2025, alleging that shareholders purchased stock at artificially inflated prices between July 15, 2025, and August 14, 2025. The lawsuit claims the company and its senior officers made false and misleading statements regarding the safety and efficiency of its lithium batteries, and omitted crucial information about safety concerns impacting EV sales. Initially, Fly-E highlighted its strong brand reputation, particularly among New York City food delivery workers, and its investments in technology like the Fly E-Bike app and adherence to safety regulations.
However, subsequent investigations revealed that many Fly-E vehicles failed federal safety tests and utilized fake safety certifications, resulting in fines, lawsuits, and registration refusals by the New York DMV. Plaintiffs argue that these undisclosed issues significantly impacted sales, and the defendants failed to inform investors about the ongoing investigations.
On August 14, 2025, Fly-E disclosed a 32% drop in net revenue due to lithium battery accidents and customer hesitancy, leading to store closures and an 87.1% stock collapse the following day. As of the report, FLYE stock had lost nearly 84% of its value year-to-date.
(Source：TipRanks)