In a recent court filing, a shareholder has raised serious allegations against the leadership of an electric vehicle company, accusing them of negligence and misconduct that led to significant financial and reputational damage. The complaint was filed by Kishan Shah on November 17, 2025, in the United States District Court for the Eastern District of New York against Zhou Ou and other key figures associated with Fly-E Group, Inc.
The lawsuit claims that the defendants breached their fiduciary duties by failing to ensure the safety of lithium batteries used in their electric vehicles. These batteries are alleged to have caused multiple deadly fires in New York City, significantly impacting consumer trust and leading to a drastic drop in stock prices. Shah's complaint highlights how these incidents were not disclosed to investors, misleading them about the company's growth prospects and financial health. The filing also accuses the defendants of unjust enrichment, waste of corporate assets, gross mismanagement, and abuse of control.
Shah is seeking legal remedies including compensatory damages for the losses incurred due to the alleged misconduct. The plaintiff argues that due to these breaches, Fly-E Group will face substantial costs related to internal investigations and potential settlements or judgments from ongoing lawsuits. The case underscores a broader issue within corporate governance where executives are accused of prioritizing personal gain over shareholder interests.
Representing Shah are attorneys from several law firms who specialize in derivative litigation. The case is being overseen by judges at the Eastern District Court under Case No.: 1:25-cv-06372.
Source: 125cv06372_Shah_v_Ou_Complaint_Eastern_District_New_York.pdf