Paysafe Faces Class Action Lawsuit for Securities Violations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy PSFE?
Source: Globenewswire
- 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 and understated its credit loss reserves and/or write-offs, rendering its public statements during 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 undermine investor confidence and impact future stock performance.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected shareholders to reach out to discuss their rights, demonstrating the firm's commitment to protecting investor interests.
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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: 6.110
Low
7.00
Averages
10.22
High
14.10
Current: 6.110
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 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 and understated its credit loss reserves and/or write-offs, rendering its public statements during 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 undermine investor confidence and impact future stock performance.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected shareholders to reach out to discuss their rights, demonstrating the firm's commitment to protecting investor interests.
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- Class Action Filed: Lowey Dannenberg P.C. announces a class action lawsuit against Paysafe for federal securities law violations on behalf of investors who purchased Paysafe securities between March 4, 2025, and November 12, 2025.
- Allegations of Misrepresentation: The lawsuit claims that Paysafe failed to disclose significant exposure to a single high-risk client, leading to understated credit loss reserves and write-offs, thereby misleading investors about the company's financial health.
- Financial Guidance Issues: Due to undisclosed issues with higher risk Merchant Category Codes, Paysafe's client services faced challenges, which are expected 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 Decline: Following the revelation of these issues, Paysafe's common stock plummeted, injuring investors who suffered losses exceeding $100,000, and affected investors are encouraged to contact attorneys before April 7, 2026, to participate in the lawsuit.
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- Lawsuit Background: Bronstein, Gewirtz & Grossman has filed a class action against Paysafe Limited, alleging that the company failed to disclose critical financial information between March 4 and November 12, 2025, resulting in investor losses.
- 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 impacting the company's overall financial health.
- Financial Guidance Missteps: Due to undisclosed issues with higher-risk Merchant Category Codes, Paysafe is unlikely to meet its previously issued financial guidance for fiscal year 2025, exacerbating investor concerns about the company's future growth prospects.
- Investor Action: Affected investors have until April 7, 2026, to request lead plaintiff status, with the law firm promising to charge fees on a contingency basis only upon successful recovery, thus minimizing litigation costs for investors.
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- Class Action Initiation: Rosen Law Firm has announced a class action lawsuit against Paysafe Limited (NYSE:PSFE) for securities purchasers between March 4, 2025, and November 12, 2025, indicating potential investor losses.
- Compensation Mechanism: Participants may receive compensation through a contingency fee arrangement without upfront costs, encouraging affected investors to apply as lead plaintiffs by April 7, 2026, ensuring their representation in the litigation.
- Law Firm Background: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, demonstrating its successful track record and expertise in this field.
- Overview of Allegations: The lawsuit alleges that Paysafe failed to disclose significant risks in its e-commerce business during the class period, leading to investor losses once the true information was revealed, potentially impacting the company's future financial performance.
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- Investor Loss Alert: Faruq & Faruq LLP is urging investors who suffered losses exceeding $75,000 in Paysafe between March 4 and November 12, 2025, to reach out, indicating significant legal risks that could undermine shareholder confidence in the company.
- 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 stark increase from the prior year's loss of $12.98 million, reflecting financial strain and a crisis of market trust.
- Credit Loss Issues: The company disclosed a credit loss expense of $13,220 primarily due to expected chargebacks from a specific merchant, alongside $9,924 in write-offs for irrecoverable amounts, indicating inadequate risk management in its Merchant Solutions segment that could lead to further revenue declines.
- Stock Price Volatility: Following the earnings report, Paysafe's stock plummeted by $2.80, or 27.6%, closing at $7.36 per share, signaling a pessimistic outlook from the market regarding the company's future prospects and potentially prompting more legal actions from investors.
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- 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.
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