Notice of Class Action Lawsuit for Paysafe Shareholders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
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Should l Buy PSFE?
Source: Globenewswire
- Class Action Notice: The Gross Law Firm has issued a notice to shareholders of Paysafe Limited (NYSE: PSFE), encouraging those who purchased shares during the class period from March 4, 2025, to November 12, 2025, to contact the firm regarding potential lead plaintiff appointment for recovery participation.
- Allegation Details: The complaint alleges that Paysafe's e-commerce business had significant exposure to a single high-risk client, resulting in understated credit loss reserves and write-offs, which could materially negatively impact the company's revenue growth and overall revenue mix.
- Financial Guidance Missteps: Due to these issues, Paysafe is unlikely to meet its previously issued financial guidance for fiscal year 2025, with executives' prior positive statements being accused of being materially misleading and lacking a reasonable basis, potentially leading to shareholder losses.
- Participation Steps: Shareholders must register by April 7, 2026, to participate in the class action, and upon registration, they will receive status updates throughout the case lifecycle, with no costs or obligations to participate.
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Analyst Views on PSFE
Wall Street analysts forecast PSFE stock price to rise
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 9.180
Low
7.00
Averages
10.22
High
14.10
Current: 9.180
Low
7.00
Averages
10.22
High
14.10
About PSFE
Paysafe Limited is a United Kingdom-based payments platform provider. The Company's integrated payments platform offers the full spectrum of payment solutions ranging from credit and debit card processing to digital wallet, eCash and real-time banking solutions. Its segments include Merchant Solutions and Digital Wallets. Merchant Solutions segment offers a range of solutions, including a full range of PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers including merchant acquiring, transaction processing, and fraud and risk management tools. This segment includes Paysafe and Petroleum Card Services brands. Digital Wallets segment is the combination of its legacy Digital Wallet and eCash solutions and services markets in Europe, United Kingdom, North America and Latin America. It also provides digital commerce solutions for specialized industry verticals, including iGaming, gaming, digital goods and cryptocurrencies.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Class Action Initiated: Pomerantz LLP has filed a class action lawsuit against Paysafe Limited, alleging securities fraud and other unlawful business practices, with investors advised to apply as Lead Plaintiff by April 7, 2026.
- Poor Financial Performance: Paysafe reported third-quarter 2025 revenue of $433.8 million, missing consensus estimates by $5.8 million, and a net loss of $87.7 million, a significant increase from the prior year's loss of $12.98 million, indicating deteriorating financial health.
- Market Challenges Intensify: CEO Bruce Lowthers disclosed that a last-minute client shutdown led to several million dollars in write-downs, and the company is facing difficulties in securing banking support due to its presence in high-risk merchant categories, exacerbating financial pressures.
- Stock Price Plummets: Following the earnings report on November 13, 2025, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share, reflecting market pessimism regarding the company's future outlook.
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- Launch of Crypto Payment Option: On Tuesday, Paysafe introduced 'Pay with Crypto' to meet the growing demand for cryptocurrency transactions among U.S. iGaming operators and daily fantasy sports platforms, demonstrating the company's keen insight into emerging market trends.
- Technical Partnership: Powered by MoonPay, the product allows users to fund gaming accounts with stablecoins or other cryptocurrencies, which are instantly converted to U.S. dollars after verification, enhancing user experience and streamlining transaction processes.
- Payment Flexibility: Operators can choose to settle payments in stablecoins or fiat currencies, increasing payment flexibility and catering to diverse customer needs, potentially attracting more users to participate in gaming activities.
- Market Demand Research: Paysafe cited research indicating strong consumer interest in crypto payments, and this new offering integrates with its existing payments gateway for iGaming platforms, further solidifying its competitive position in the rapidly growing online gambling market.
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Launch of Pay with Crypto: Paysafe has introduced a new payment method called Pay with Crypto, aimed at gaming operators and daily fantasy sports brands in the U.S. market.
Target Audience: The service is designed to cater specifically to the needs of gaming operators and fantasy sports brands, facilitating cryptocurrency transactions for their customers.
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- Class Action Notice: Rosen Law Firm reminds investors who purchased Paysafe securities between March 4, 2025, and November 12, 2025, to apply as lead plaintiffs by April 7, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Paysafe failed to disclose significant exposure to a single high-risk client during the class period, leading to understated credit loss reserves and write-offs, which negatively impacted the company's revenue growth.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, demonstrating its expertise and successful track record in this field.
- Investor Advisory: Investors are advised to carefully select legal counsel, as Rosen Law Firm was ranked first in 2017 for the number of securities class action settlements, highlighting its experience and resources in handling such cases.
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- Class Action Initiated: Bragar Eagel & Squire has filed a class action lawsuit against Paysafe in the Southern District of New York on behalf of investors who purchased securities between March 4 and November 12, 2025, with a deadline of April 7, 2026, to apply as lead plaintiff.
- Allegations of Misleading Statements: The complaint alleges that Paysafe failed to disclose significant reliance on a single high-risk client, resulting in understated credit loss reserves, which negatively impacted the company's revenue growth and financial outlook during the class period.
- Financial Performance Miss: On November 13, 2025, Paysafe reported third-quarter results that missed revenue and EPS estimates due to a last-minute client shutdown causing a multi-million dollar write-down, leading to a 27.6% drop in stock price.
- Investor Losses: As a result of these issues, investors suffered losses following the stock price decline, prompting Bragar Eagel & Squire to encourage affected investors to reach out to discuss their legal rights and potential claims.
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- Poor Financial Performance: Paysafe reported third-quarter revenue of $433.8 million in 2025, missing market expectations by $5.8 million, with a net loss of $87.7 million, a significant increase from the previous year's loss, indicating severe financial distress that may impact future financing capabilities.
- Increased Credit Losses: The company disclosed a credit loss expense of $13,220 primarily due to expected chargebacks from a specific merchant, alongside write-offs of $9,924 in the Merchant Solutions segment, highlighting significant risks in managing high-risk clients.
- Stock Price Plummet: Following the earnings report on November 13, 2025, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share, reflecting strong market concerns about the company's future prospects, which could further erode investor confidence.
- Class Action Initiation: Investors are reminded to file for lead plaintiff status by April 7, 2026, alleging that the company failed to disclose material adverse facts in its financial reports, potentially leading to greater losses for investors, underscoring concerns over corporate transparency and compliance.
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