Law Offices of Frank R. Cruz Encourages Paysafe Limited (PSFE) Shareholders To Inquire About Securities Fraud Class Action

Core Viewpoint - A class action lawsuit has been filed against Paysafe Limited for allegedly misleading shareholders regarding the company's financial health and operations during the specified class period from March 4, 2025, to November 12, 2025 [1][5]. Financial Performance - Paysafe reported third quarter revenue of $433.8 million, which was $5.8 million below consensus estimates, and a net loss of $87.7 million, significantly worse than the prior year's net loss of $12.98 million [3]. - The company revised its full year 2025 expected revenue down to $17 million at the midpoint and adjusted EPS to $0.50 at the midpoint [3]. Credit Loss and Operational Issues - The company disclosed a credit loss expense of $13,220, primarily due to expected chargebacks related to a specific merchant in the Merchant Solutions segment [4]. - Write-offs amounted to $9,924, driven by irrecoverable amounts receivable in the Merchant Solutions segment [4]. - CEO Bruce Lowthers indicated that a last-minute client shutdown led to several million-dollar write-downs in Q3, and the company faced challenges with higher risk Merchant Category Codes [4]. Stock Market Reaction - Following the announcement of the financial results, Paysafe's stock price dropped by $2.80, or 27.6%, closing at $7.36 per share on November 13, 2025, with unusually high trading volume [4]. Allegations in the Lawsuit - The lawsuit claims that the defendants made materially false and misleading statements and failed to disclose significant risks, including: 1. Significant exposure to a single high-risk client in the ecommerce business [5]. 2. Understated credit loss reserves and write-offs [5]. 3. Undisclosed issues with higher risk Merchant Category Codes affecting banking services [5]. 4. Likely negative impacts on revenue growth and overall revenue mix [5]. 5. Unlikelihood of meeting previously issued financial guidance for fiscal year 2025 [5]. 6. Misleading positive statements about the company's business and prospects [5].