A federal securities class action lawsuit has been filed against Fly-E Group, Inc., alleging the company misled investors about its financial performance and growth prospects. The complaint also names CEO Zhou Ou and CFO Shiwen Feng as defendants.
The lawsuit claims that between July 15, 2025, and August 14, 2025, Fly-E Group misrepresented revenue growth and product safety to investors. During this period, the company reportedly assured investors of a strong market position in urban mobility and projected growth through an expanded sales network and product portfolio. The complaint contends that these statements concealed safety issues with the company’s lithium batteries used in e-bikes and e-scooters, which allegedly contributed to a decline in sales revenue following battery-related incidents.
On August 14, 2025, Fly-E disclosed a 32% drop in net revenues in a form NT 10-Q filed with the SEC, attributed primarily to reduced unit sales from lithium battery accidents. The disclosure led to a decrease in Fly-E’s stock price from $7.76 per share on August 14 to $1.00 per share on August 15. The plaintiff argues that the prior statements artificially inflated the stock price.
The complaint cites alleged violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. It seeks damages for investors who purchased or acquired Fly-E securities during the class period at prices allegedly inflated by misleading information.
The lawsuit also requests pre-judgment and post-judgment interest, attorneys’ fees, and other related costs. The plaintiff seeks certification as a class representative under Federal Rule of Civil Procedure 23.
The plaintiff is represented by attorney Adam M. Apton of Levi & Korsinsky LLP. The case was filed in the United States District Court for the Eastern District of New York under Case No. 25-5017.