Faruqi & Faruqi Investigates Securities Fraud Claims Against Paysafe
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy PSFE?
Source: PRnewswire
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential securities fraud claims against Paysafe Limited, urging investors who purchased shares between March 4, 2025, and November 12, 2025, to seek lead plaintiff status in a class action by the April 7, 2026 deadline, thereby protecting their legal rights.
- Declining Financial Performance: Paysafe reported third-quarter revenue of $433.8 million, missing consensus estimates by $5.8 million, with a net loss of $87.7 million, a significant drop from the prior year's loss of $12.98 million, indicating severe financial pressure that could impact future investor confidence.
- Credit Loss Issues: The company disclosed a credit loss expense of $13,220 for the quarter, primarily due to expected chargebacks related to a specific merchant, and reported write-offs of $9,924, reflecting inadequate risk management in its Merchant Solutions segment, which may limit future revenue growth.
- Stock Price Plummet: Following the earnings report, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share on unusually high trading volume, indicating strong market concerns about the company's financial health, potentially leading to decreased investor confidence in its future performance.
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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: 6.510
Low
7.00
Averages
10.22
High
14.10
Current: 6.510
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.
Faruqi & Faruqi Investigates Securities Fraud Claims Against Paysafe
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential securities fraud claims against Paysafe Limited, urging investors who purchased shares between March 4, 2025, and November 12, 2025, to seek lead plaintiff status in a class action by the April 7, 2026 deadline, thereby protecting their legal rights.
- Declining Financial Performance: Paysafe reported third-quarter revenue of $433.8 million, missing consensus estimates by $5.8 million, with a net loss of $87.7 million, a significant drop from the prior year's loss of $12.98 million, indicating severe financial pressure that could impact future investor confidence.
- Credit Loss Issues: The company disclosed a credit loss expense of $13,220 for the quarter, primarily due to expected chargebacks related to a specific merchant, and reported write-offs of $9,924, reflecting inadequate risk management in its Merchant Solutions segment, which may limit future revenue growth.
- Stock Price Plummet: Following the earnings report, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share on unusually high trading volume, indicating strong market concerns about the company's financial health, potentially leading to decreased investor confidence in its future performance.
See More
Notice of Paysafe Securities Class Action
- Class Action Deadline: Rosen Law Firm reminds investors who purchased Paysafe securities between March 4, 2025, and November 12, 2025, that they must apply to be lead plaintiff by April 7, 2026, to participate in the class action and potentially receive compensation.
- Lawsuit Background: The lawsuit alleges that Paysafe failed to disclose significant exposure to a single high-risk client during the class period, resulting in understated credit loss reserves and write-offs, which negatively impacted the company's revenue growth and overall revenue mix.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and was ranked No. 1 by ISS Securities Class Action Services in 2017, recovering over $438 million for investors in 2019 alone, demonstrating its success and resources in this field.
- Investor Advisory: Investors are advised to choose qualified counsel with a proven track record in leadership roles, as many firms issuing notices lack the necessary experience and may merely act as intermediaries without handling the litigation themselves.
See More
Paysafe Securities Fraud Class Action Initiated
- Lawsuit Background: A class action lawsuit has been filed on behalf of investors who purchased Paysafe securities between March 4 and November 12, 2025, alleging the company failed to disclose significant reliance on a single high-risk client, leading to understated credit loss reserves.
- Financial Impact: The third-quarter 2025 financial report revealed a credit loss expense of $13.22 million, primarily due to expected chargebacks related to a specific merchant, highlighting significant deficiencies in the company's risk management practices.
- Stock Price Reaction: Following the financial report released on November 13, 2025, Paysafe's stock price plummeted by $2.80, or approximately 27.6%, from $10.16 per share on November 12 to $7.36, reflecting market concerns over the company's financial health.
- Investor Action: Investors must apply by April 7, 2026, to be appointed as lead plaintiffs, allowing them to represent the class's interests and influence litigation strategy and settlement decisions, underscoring the importance of investor participation in legal proceedings.
See More
Pomerantz Files Class Action Against Paysafe Limited
- 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.
- Increased Market Challenges: CEO Bruce Lowthers disclosed that a last-minute client shutdown led to several million dollars in write-downs, and the company faces difficulties in banking due to its presence in high-risk merchant category codes, exacerbating financial pressures.
- Significant Stock Price Drop: Following the earnings report on November 13, 2025, Paysafe's stock price plummeted by $2.80, or 27.6%, closing at $7.36 per share, reflecting market pessimism regarding the company's outlook.
See More
Reminder of Class Action Lawsuits for Shareholders of Multiple Companies
- Class Action Notification: The Law Offices of Frank R. Cruz remind investors of class action lawsuits filed against BlackRock TCP Capital Corp., Oracle Corporation, Paysafe Limited, and Inovio Pharmaceuticals, urging shareholders to file lead plaintiff motions by the specified deadlines to protect their rights.
- BlackRock TCP Details: The lawsuit alleges that BlackRock failed to timely disclose investment valuation issues from November 2024 to January 2026, leading to investor misunderstandings about the company's business prospects, which could undermine shareholder confidence and affect stock prices.
- Oracle Lawsuit Impact: Oracle faces a class action from June to December 2025, claiming its AI infrastructure strategy resulted in significant capital expenditure increases without corresponding revenue growth, potentially jeopardizing its debt and credit rating, thereby impacting investor confidence.
- Paysafe and Inovio Overview: Paysafe's lawsuit highlights undisclosed high-risk client issues that may limit revenue growth, while Inovio's manufacturing deficiencies could delay FDA submissions, both posing significant negative implications for future company performance.
See More
Class Action Notice for Paysafe Investors
- Class Action Initiation: The Portnoy Law Firm advises Paysafe investors of a class action for those who purchased securities between March 4 and November 12, 2025, with a deadline of April 7, 2026, to file a lead plaintiff motion to protect their legal rights.
- Financial Risks Uncovered: The complaint reveals that Paysafe failed to disclose 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.
- Stock Price Plunge: Following the revelation of these issues, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share on November 13, 2025, indicating market concerns regarding the company's financial health.
- Legal Support Offered: The Portnoy Law Firm provides complimentary case evaluations for investors to pursue claims for losses incurred due to corporate wrongdoing, highlighting its expertise and successful track record in investor rights protection.
See More
Faruqi & Faruqi Investigates Securities Fraud Claims Against Paysafe
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential securities fraud claims against Paysafe Limited, urging investors who purchased shares between March 4, 2025, and November 12, 2025, to seek lead plaintiff status in a class action by the April 7, 2026 deadline, thereby protecting their legal rights.
- Declining Financial Performance: Paysafe reported third-quarter revenue of $433.8 million, missing consensus estimates by $5.8 million, with a net loss of $87.7 million, a significant drop from the prior year's loss of $12.98 million, indicating severe financial pressure that could impact future investor confidence.
- Credit Loss Issues: The company disclosed a credit loss expense of $13,220 for the quarter, primarily due to expected chargebacks related to a specific merchant, and reported write-offs of $9,924, reflecting inadequate risk management in its Merchant Solutions segment, which may limit future revenue growth.
- Stock Price Plummet: Following the earnings report, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share on unusually high trading volume, indicating strong market concerns about the company's financial health, potentially leading to decreased investor confidence in its future performance.
See More
Notice of Paysafe Securities Class Action
- Class Action Deadline: Rosen Law Firm reminds investors who purchased Paysafe securities between March 4, 2025, and November 12, 2025, that they must apply to be lead plaintiff by April 7, 2026, to participate in the class action and potentially receive compensation.
- Lawsuit Background: The lawsuit alleges that Paysafe failed to disclose significant exposure to a single high-risk client during the class period, resulting in understated credit loss reserves and write-offs, which negatively impacted the company's revenue growth and overall revenue mix.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and was ranked No. 1 by ISS Securities Class Action Services in 2017, recovering over $438 million for investors in 2019 alone, demonstrating its success and resources in this field.
- Investor Advisory: Investors are advised to choose qualified counsel with a proven track record in leadership roles, as many firms issuing notices lack the necessary experience and may merely act as intermediaries without handling the litigation themselves.
See More
Paysafe Securities Fraud Class Action Initiated
- Lawsuit Background: A class action lawsuit has been filed on behalf of investors who purchased Paysafe securities between March 4 and November 12, 2025, alleging the company failed to disclose significant reliance on a single high-risk client, leading to understated credit loss reserves.
- Financial Impact: The third-quarter 2025 financial report revealed a credit loss expense of $13.22 million, primarily due to expected chargebacks related to a specific merchant, highlighting significant deficiencies in the company's risk management practices.
- Stock Price Reaction: Following the financial report released on November 13, 2025, Paysafe's stock price plummeted by $2.80, or approximately 27.6%, from $10.16 per share on November 12 to $7.36, reflecting market concerns over the company's financial health.
- Investor Action: Investors must apply by April 7, 2026, to be appointed as lead plaintiffs, allowing them to represent the class's interests and influence litigation strategy and settlement decisions, underscoring the importance of investor participation in legal proceedings.
See More
Pomerantz Files Class Action Against Paysafe Limited
- 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.
- Increased Market Challenges: CEO Bruce Lowthers disclosed that a last-minute client shutdown led to several million dollars in write-downs, and the company faces difficulties in banking due to its presence in high-risk merchant category codes, exacerbating financial pressures.
- Significant Stock Price Drop: Following the earnings report on November 13, 2025, Paysafe's stock price plummeted by $2.80, or 27.6%, closing at $7.36 per share, reflecting market pessimism regarding the company's outlook.
See More
Reminder of Class Action Lawsuits for Shareholders of Multiple Companies
- Class Action Notification: The Law Offices of Frank R. Cruz remind investors of class action lawsuits filed against BlackRock TCP Capital Corp., Oracle Corporation, Paysafe Limited, and Inovio Pharmaceuticals, urging shareholders to file lead plaintiff motions by the specified deadlines to protect their rights.
- BlackRock TCP Details: The lawsuit alleges that BlackRock failed to timely disclose investment valuation issues from November 2024 to January 2026, leading to investor misunderstandings about the company's business prospects, which could undermine shareholder confidence and affect stock prices.
- Oracle Lawsuit Impact: Oracle faces a class action from June to December 2025, claiming its AI infrastructure strategy resulted in significant capital expenditure increases without corresponding revenue growth, potentially jeopardizing its debt and credit rating, thereby impacting investor confidence.
- Paysafe and Inovio Overview: Paysafe's lawsuit highlights undisclosed high-risk client issues that may limit revenue growth, while Inovio's manufacturing deficiencies could delay FDA submissions, both posing significant negative implications for future company performance.
See More
Class Action Notice for Paysafe Investors
- Class Action Initiation: The Portnoy Law Firm advises Paysafe investors of a class action for those who purchased securities between March 4 and November 12, 2025, with a deadline of April 7, 2026, to file a lead plaintiff motion to protect their legal rights.
- Financial Risks Uncovered: The complaint reveals that Paysafe failed to disclose 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.
- Stock Price Plunge: Following the revelation of these issues, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share on November 13, 2025, indicating market concerns regarding the company's financial health.
- Legal Support Offered: The Portnoy Law Firm provides complimentary case evaluations for investors to pursue claims for losses incurred due to corporate wrongdoing, highlighting its expertise and successful track record in investor rights protection.
See More
