Paysafe Faces Class Action Allegations from Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy PSFE?
Source: Globenewswire
- Class Action Initiated: Robbins LLP reminds investors that a class action has been filed on behalf of shareholders who purchased Paysafe Limited (NYSE: PSFE) securities between March 4, 2025, and November 12, 2025, highlighting significant investor concerns regarding the company's transparency.
- Serious Allegations Uncovered: The lawsuit alleges that Paysafe misled investors by failing to disclose its significant reliance on a single high-risk client in its e-commerce business, resulting in understated credit loss reserves and write-offs, which could jeopardize the company's financial health.
- Stock Price Volatility: Following the revelation of these issues, Paysafe's stock price plummeted by 27.6% to close at $7.36 per share on November 13, 2025, reflecting market pessimism about the company's future growth prospects.
- Investor Action Guidance: Shareholders must submit their papers by April 7, 2026, to serve as lead plaintiffs in the class action, indicating a strong desire among investors to pursue legal recourse and emphasizing the importance of corporate governance and transparency.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PSFE?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PSFE
Wall Street analysts forecast PSFE stock price to rise
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 6.340
Low
7.00
Averages
10.22
High
14.10
Current: 6.340
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: Robbins LLP reminds investors that a class action has been filed on behalf of shareholders who purchased Paysafe Limited (NYSE: PSFE) securities between March 4, 2025, and November 12, 2025, highlighting significant investor concerns regarding the company's transparency.
- Serious Allegations Uncovered: The lawsuit alleges that Paysafe misled investors by failing to disclose its significant reliance on a single high-risk client in its e-commerce business, resulting in understated credit loss reserves and write-offs, which could jeopardize the company's financial health.
- Stock Price Volatility: Following the revelation of these issues, Paysafe's stock price plummeted by 27.6% to close at $7.36 per share on November 13, 2025, reflecting market pessimism about the company's future growth prospects.
- Investor Action Guidance: Shareholders must submit their papers by April 7, 2026, to serve as lead plaintiffs in the class action, indicating a strong desire among investors to pursue legal recourse and emphasizing the importance of corporate governance and transparency.
See More
- Class Action Reminder: The Schall Law Firm alerts investors that Paysafe is facing a class action lawsuit for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities transactions from March 4 to November 12, 2025, with a deadline for investor contact set for April 7, 2026.
- False Statements Exposed: The complaint alleges that Paysafe failed to disclose significant exposure to high-risk clients in its e-commerce business while underreporting credit loss reserves and write-offs, rendering its public statements throughout the class period false and misleading.
- Investor Losses: As the market learned the truth about Paysafe, investors suffered damages, indicating serious deficiencies in the company's disclosure practices that could impact future market trust and stock performance.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected investors to join the lawsuit to seek compensation for their losses, demonstrating the firm's commitment to protecting shareholder rights.
See More
- Class Action Overview: 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 investors to file lead plaintiff motions by the specified deadlines to protect their rights.
- BlackRock TCP Lawsuit Details: The lawsuit alleges that from November 2024 to January 2026, BlackRock failed to timely and appropriately value investments, leading to understated unrealized losses and inflated net asset value (NAV), resulting in significant losses for investors.
- Oracle Lawsuit Impact: Between June and December 2025, Oracle's AI infrastructure strategy resulted in massive capital expenditure increases without corresponding revenue growth, raising serious risks regarding the company's debt and credit rating, which could adversely affect investors' financial positions.
- Risks for Paysafe and Inovio: The lawsuit against Paysafe, covering March to November 2025, highlights its significant exposure to high-risk clients, potentially hindering revenue growth, while Inovio faces challenges in submitting its FDA application on time due to manufacturing deficiencies, both posing substantial risks to investors.
See More
- 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 categories, compounding operational challenges.
- 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 prospects.
See More
- Declining Financial Performance: Paysafe reported third-quarter 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 severe financial distress that could impact future financing capabilities.
- Increased Credit Losses: The company disclosed a credit loss expense of $13,220 for the quarter, primarily due to expected chargebacks related to a high-risk client, highlighting vulnerabilities in its high-risk merchant category that may lead to future customer attrition and revenue decline.
- Stock Price Plunge: Following the earnings report, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share, reflecting market pessimism regarding the company's outlook, which could further erode investor confidence.
- Class Action Lawsuit Initiation: Investors are reminded to file a lead plaintiff motion by April 7, 2026, alleging that the company failed to disclose critical negative information in its financial reports, potentially exposing investors to greater losses and indicating legal risks that could affect the company's reputation and financial health.
See More
- Class Action Notification: The Portnoy Law Firm advises Paysafe investors of a class action lawsuit 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.
- Undisclosed Risks: The complaint highlights that Paysafe's e-commerce business had significant exposure to a single high-risk client, which led to understated credit loss reserves and write-offs, thereby jeopardizing the company's financial stability.
- Financial Guidance Missteps: Due to undisclosed issues with higher-risk Merchant Category Codes, Paysafe's client services faced banking difficulties, which are likely to materially negatively impact revenue growth and overall revenue mix, making it unlikely for the company to meet its previously issued financial guidance for fiscal year 2025.
- 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 a strong market reaction to the company's deteriorating financial outlook.
See More


