Paysafe Faces Class Action Lawsuit Warning
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 11 2026
0mins
Should l Buy PSFE?
Source: Businesswire
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against Paysafe Limited for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between March 4, 2025, and November 12, 2025, with a deadline for participation set for April 7, 2026.
- False Statement Allegations: 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 throughout the class period false and misleading.
- Market Reaction Impact: As the market learned the truth about Paysafe, investors suffered losses, highlighting significant deficiencies in the company's risk management and disclosure practices, which could adversely affect its future stock performance and investor confidence.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected shareholders to take action before class certification to ensure their rights are protected, reflecting the importance of investor rights and the necessity of legal support.
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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: 6.310
Low
7.00
Averages
10.22
High
14.10
Current: 6.310
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.
- Agent Recruitment Program Expansion: Paysafe announces the expansion of its U.S. Agent Recruitment Program, opening applications to early career professionals and community-connected sellers to assist small and midsized businesses in accepting payments and enhancing checkout experiences, thereby strengthening market competitiveness.
- Comprehensive Support System: New agents will receive structured onboarding, ongoing training through Paysafe University, ready-made marketing resources, and dedicated support representatives, ensuring that agents and merchants can obtain fast answers and activations, thus improving operational efficiency.
- Income Potential Incentives: Agents participating in the program will enjoy competitive pay, bonuses, free equipment, and unlimited earning potential, with a tiered commission structure that increases with performance, reflecting Paysafe's commitment to the long-term development of its agents.
- Market Demand Response: The program aims to meet the payment needs of small businesses by helping merchants optimize conversion rates and checkout performance, further driving the mutual growth of agents and merchants and enhancing overall market service capabilities.
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- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against Paysafe for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between March 4, 2025, and November 12, 2025, with a deadline to contact the firm by April 7, 2026, to participate.
- False Statement Allegations: The complaint alleges that Paysafe failed to disclose significant exposure to high-risk clients in its e-commerce business while understating credit loss reserves and/or write-offs, rendering its public statements false and misleading throughout the class period.
- Market Reaction Impact: As the market learned the truth about Paysafe, investors suffered losses, indicating serious deficiencies in the company's risk management and disclosure practices, which could adversely affect future investor confidence and stock performance.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected shareholders to take action before the class action is certified, emphasizing the importance of protecting investor rights.
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- 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 Details: The lawsuit alleges that from November 2024 to January 2026, BlackRock failed to timely and appropriately value its investments, resulting in understated unrealized losses and misleading investors about the company's net asset value (NAV).
- Oracle's Impact: Oracle faces a class action from June to December 2025, claiming its AI infrastructure strategy led to massive capital expenditure increases without corresponding revenue growth, raising concerns about debt risks and credit ratings, which could undermine investor confidence.
- Risks for Paysafe and Inovio: Paysafe's lawsuit highlights significant exposure to a single high-risk client, potentially hindering revenue growth, while Inovio's manufacturing deficiencies may prevent timely FDA submissions for critical applications, posing risks of investor losses.
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- Investor Loss Alert: Securities Litigation Partner Josh Wilson from Faruq & Faruq encourages investors who suffered losses exceeding $50,000 in Paysafe between March 4, 2025, and November 12, 2025, to contact him directly, highlighting the firm's commitment to investor rights.
- Legal Action Notification: The firm is investigating potential claims against Paysafe Limited and reminds investors of the April 7, 2026, deadline to seek the role of lead plaintiff in a federal securities class action, indicating the urgency and significance of the case.
- Contact Information Provided: Investors can reach Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310) for more information, ensuring they can access legal support in a timely manner.
- Role of Securities Law Firm: As a leading national securities law firm, Faruq & Faruq actively engages in the investigation against Paysafe, reflecting its expertise and influence in protecting investor rights within the industry.
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- Class Action Initiated: Pomerantz LLP has filed a class action lawsuit against Paysafe Limited, alleging securities fraud and other unlawful business practices by the company and certain officers, with investors advised to apply as Lead Plaintiff by April 7, 2026, highlighting serious concerns over corporate governance and compliance.
- 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, reflecting the financial pressures and market challenges the company faces.
- Client Loss Impact: CEO Bruce Lowthers disclosed that a last-minute client shutdown led to several million dollars in write-downs in Q3, indicating operational difficulties in high-risk merchant categories, which may affect future customer relationships and revenue stability.
- Stock Price Plummet: Following the earnings report, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share, demonstrating strong market concerns regarding the company's financial health, which could lead to diminished investor confidence.
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- Lawsuit Background: Kirby McInerney LLP reminds investors who purchased Paysafe (NYSE:PSFE) securities between March 4 and November 12, 2025, that undisclosed exposure to a high-risk client may have understated credit loss reserves, impacting revenue growth, with a deadline of April 7, 2026, to apply for lead plaintiff status.
- Financial Missteps: Paysafe's Q3 2025 financial results missed revenue and EPS estimates due to a last-minute client shutdown causing a multi-million dollar write-down, highlighting significant flaws in the company's risk management practices.
- Credit Loss Disclosure: As of September 30, 2025, Paysafe reported a credit loss expense of $13,220 primarily due to expected chargebacks related to a specific merchant, indicating potential risks in its Merchant Solutions segment.
- Stock Price Reaction: Following the November 13, 2025, earnings report, Paysafe's stock price fell by $2.80, or approximately 27.6%, from $10.16 to $7.36, reflecting market concerns over the company's financial health.
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