Fly-E ($FLYE) Lithium Battery Failures and Safety Cover-Up Case

Court: E.D. New York

Case: 1:25-cv-05017

• FLYE investors filed a claim against Fly-E Group, Inc. for making false and misleading statements about its product safety, revenue projections, and lithium battery issues.
• After delaying its quarterly report and disclosing a 32% drop in net revenue linked to battery-related incidents, FLYE collapsed 87% on August 14, 2025.
• FLYE investors can join this case to be notified about potential recovery.

Case Details:

Between July 15, 2025, and August 14, 2025, Fly-E executives repeatedly promoted the company’s strong growth outlook, citing brand loyalty, cost reductions, and plans to expand their EV product lines and sales networks. Fly-E’s 10-K emphasized its compliance with safety regulations and celebrated selection for a New York City e-bike trade-in program, further reinforcing investor confidence.

In reality, Fly-E’s lithium battery safety issues were already contributing to sales declines. While the company admitted to a 21% revenue drop in its July 10-K, it failed to disclose that its own lithium batteries were involved in explosion incidents affecting customer confidence. The company continued to issue optimistic forecasts despite lacking adequate forecasting processes and downplaying the risks posed by battery-related accidents and regulatory scrutiny.

On August 14, 2025, Fly-E filed a Form NT 10-Q, revealing it could not meet its filing deadline and disclosing a 32% revenue decline, attributing it to reduced unit sales caused by “recent lithium-battery accidents involving E-Bikes and E-Scooters.” Investors reacted sharply: the stock dropped on August 14 and August 15, marking an 87% one-day loss.

Based on these events, FLYE investors filed a claim against Fly-E, alleging the company:

• It misled investors about the safety of its lithium battery products.
• It lacked effective forecasting processes and concealed financial risks.
• It artificially inflated its stock price through overly optimistic and misleading public statements.

Investors argue Fly-E misled the market about the safety and financial viability of its EV products, causing severe losses when the truth was revealed.