Paysafe (US:PSFE) Globenewswire·2026-02-20 01:00Core Viewpoint - The article discusses a class action lawsuit against Paysafe Limited, highlighting allegations of securities fraud related to undisclosed risks and financial misstatements during a specific period [4]. Group 1: Lawsuit Details - The lawsuit is filed on behalf of investors who purchased Paysafe securities from March 4, 2025, to November 12, 2025, alleging that the company failed to disclose significant risks associated with a high-risk client [4]. - Allegations include understated credit loss reserves, issues with higher risk Merchant Category Codes, and the likelihood that Paysafe would not meet its financial guidance for fiscal year 2025 [4]. - The lawsuit emphasizes that these undisclosed issues could materially impact the company's revenue growth and overall revenue mix [4]. Group 2: Financial Impact - On November 13, 2025, Paysafe reported third-quarter financial results that missed revenue and EPS estimates, attributing a several-million-dollar write-down to a last-minute client shutdown [5]. - The company's credit loss expense for the three months ended September 30, 2025, was reported at $13,220, primarily due to expected chargebacks related to a specific merchant [5]. - Following the financial report, Paysafe's share price dropped by $2.80, approximately 27.6%, from $10.16 to $7.36 [5].