Paysafe (US:PSFE) Globenewswire·2026-02-26 14:38Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Paysafe Limited due to allegations of violations of federal securities laws, with a deadline for investors to seek lead plaintiff status in a class action lawsuit by April 7, 2026 [3]. Group 1: Allegations Against Paysafe - The complaint alleges that Paysafe and its executives made false or misleading statements and failed to disclose significant risks, including exposure to a high-risk client and understated credit loss reserves [5]. - Specific issues cited include difficulties in banking services due to higher risk Merchant Category Codes, which are likely to negatively impact revenue growth and financial guidance for fiscal year 2025 [5]. - The allegations suggest that Paysafe's positive statements regarding its business operations were materially misleading [5]. Group 2: Financial Performance - On November 13, 2025, Paysafe reported third-quarter financial results with revenue of $433.8 million, missing consensus estimates by $5.8 million, and a net loss of $87.7 million, a significant increase from a net loss of $12.98 million in the prior year [6]. - The company revised its full-year 2025 revenue expectations to $17 million at the midpoint and adjusted EPS to $0.50 at the midpoint [6]. - The credit loss expense for the quarter was reported at $13,220, primarily due to expected chargebacks related to a specific merchant, with write-offs of $9,924 attributed to irrecoverable amounts in the Merchant Solutions segment [7]. Group 3: Market Reaction - Following the financial report, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share on unusually heavy trading volume [7].