Core Viewpoint - A class action lawsuit has been filed against Fly-E Group, Inc. for allegedly misleading investors about its business prospects and revenue outlook during a specific period in 2025 [2][3]. Company Overview - Fly-E Group, Inc. designs, installs, and sells smart electric motorcycles, electric bikes, electric scooters, and related accessories under the Fly E-Bike brand in the United States, Mexico, and Canada [1]. Allegations - The lawsuit claims that Fly-E Group's management created a false impression of having reliable information regarding projected revenue and sales, while the actual demand for its electric vehicles fell short [2]. - The complaint highlights that the company downplayed risks associated with lithium batteries, supply chain changes, and regulatory challenges, while overemphasizing its brand reputation and cost reductions [2]. Financial Performance - On August 14, 2025, Fly-E filed a notification with the SEC indicating a significant 32% decrease in net revenue compared to the same period in 2024, primarily due to a decline in total units sold [3]. - The decline in sales was attributed to customers' hesitance to purchase E-Bikes following an increase in lithium battery explosion incidents, particularly in New York [3]. - Following the revenue announcement, Fly-E's stock price plummeted approximately 87%, from $7.76 per share to $1.00 per share within a single day [3].
Investor Alert: Robbins LLP Informs Investors of the Fly-E Group, Inc. Class Action Lawsuit