Paysafe (US:PSFE) Globenewswire·2026-03-20 00:00Core Viewpoint - Paysafe Limited is facing a federal securities class action lawsuit due to alleged undisclosed risks related to its ecommerce business, which may have negatively impacted its financial performance during the specified class period [4]. Group 1: Lawsuit Details - The lawsuit is 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]. - Specific allegations include understated credit loss reserves, issues with higher risk Merchant Category Codes, and the likelihood of failing to meet previously issued financial guidance for fiscal year 2025 [4]. Group 2: Financial Impact - On November 13, 2025, Paysafe reported third-quarter financial results that missed revenue and EPS estimates, attributing the shortfall to a last-minute client shutdown that resulted in a several-million-dollar write-down [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, or approximately 27.6%, from $10.16 to $7.36 [5].