Core Viewpoint - A class action lawsuit has been filed against Fly-E Group, Inc. for allegedly making false and misleading statements regarding its lithium battery technology and its impact on the company's revenue from electric vehicles [1][3]. Summary by Relevant Sections Class Action Details - The lawsuit seeks to recover losses for investors who purchased Fly-E securities between July 15, 2025, and August 14, 2025 [1]. - Investors have until November 7, 2025, to seek appointment as lead plaintiff if they suffered losses during the Class Period [2]. Allegations Against Fly-E Group - The lawsuit claims that Fly-E Group and certain officers failed to disclose safety issues with their lithium battery technology while making positive public statements [3]. - Allegations include that these undisclosed safety and regulatory concerns negatively affected revenue from the company's electric vehicle business, including e-bikes and e-scooters [3]. - The complaint also asserts that the company's forecasts lacked a reasonable basis, failing to account for rising operating costs, supply chain risks, and demand fluctuations [3]. - Following the revelation of these issues, the company's stock price declined as investors reacted to the disclosures [3].

Market Overview - The global Electric Scooter market is projected to grow from US$ 26.73 billion in 2024 to US$ 55.01 billion by 2033, with a compound annual growth rate (CAGR) of 8.35% from 2025 to 2033 [1][12][13] - The market is driven by increasing demand for fuel-efficient vehicles and concerns over carbon emissions, supported by stringent government regulations [1][15] Growth Drivers - The rise in urbanization and the need for effective, eco-friendly transportation options are key factors fueling the electric scooter market's growth [2][15] - Government incentives, subsidies, and infrastructure development, such as designated scooter lanes and charging stations, are promoting the adoption of electric scooters [2][15] - Technological advancements in battery efficiency and materials have improved the performance and appeal of electric scooters, addressing consumer concerns like range anxiety [3][6][7] Consumer Trends - There is a noticeable shift towards sustainable transport solutions, particularly among younger consumers who prefer electric scooters for their convenience and minimal environmental impact [5][15] - Electric scooters are increasingly favored for last-mile connectivity and quick commuting in urban areas with heavy traffic and limited parking [5][15] Challenges - Maintenance and durability issues pose significant challenges, especially for shared mobility models, as electric scooters face wear and tear from continuous use [8][9] - Competition from alternative modes of transport, such as electric bikes and public transportation, threatens the market share of electric scooters [10][11] Key Players - Major companies in the electric scooter market include Yadea Technology Group Co. Ltd, Niu Technologies, Mahindra, Vmoto Limited, and Gogoro Inc. [14][21] Regional Insights - North America is expected to hold the largest market share in the electric scooter industry [16]