Paysafe Securities Fraud Class Action Reminder
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy PSFE?
Source: Globenewswire
- 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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Analyst Views on PSFE
Wall Street analysts forecast PSFE stock price to rise
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 6.470
Low
7.00
Averages
10.22
High
14.10
Current: 6.470
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 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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- Paysafe Class Action: A class action has been initiated against Paysafe Limited (NYSE:PSFE), alleging that the company failed to disclose significant financial issues related to a high-risk client, which misled investors about the true business outlook and could materially impact revenue growth.
- Financial Performance Miss: 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, resulting in a 27.6% drop in stock price to $7.36 per share, inflicting losses on investors.
- Oracle Class Action: Oracle Corporation (NYSE:ORCL) is also facing a class action, with allegations that it misrepresented its AI infrastructure strategy, which would lead to massive CapEx increases without corresponding near-term revenue growth, raising concerns about debt and credit rating risks.
- Legal Implications: Both companies are facing legal challenges from investors, which could lead to shareholder compensation claims in future lawsuits, potentially affecting their reputations and future financing capabilities.
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- Earnings Miss: 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 increase from the previous year's loss of $12.98 million, indicating deteriorating financial health that could undermine investor confidence.
- Increased Credit Losses: The company disclosed a credit loss expense of $13,220 for the quarter, primarily due to expected chargebacks from a specific merchant, alongside write-offs of $9,924 in the Merchant Solutions segment, highlighting challenges in managing high-risk clients that may lead to revenue instability.
- Stock Price Plunge: 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, reflecting strong market concerns about the company's future prospects and potentially triggering further legal actions from investors.
- Class Action Initiation: Investors are reminded to file a lead plaintiff motion by April 7, 2026, alleging that the company made materially false statements and failed to disclose adverse facts, which may expose investors to greater losses and reflect serious issues in corporate governance and transparency.
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- Lawsuit Background: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Paysafe Limited, alleging that the company and its officers failed to disclose significant risks during the period from March 4, 2025, to November 12, 2025, undermining investor confidence.
- Risk Exposure: The complaint highlights 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.
- 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 the risk of investor losses.
- Investor Rights Protection: Bronstein, Gewirtz & Grossman, LLC offers risk-free legal services, promising to charge fees only upon success, and encourages affected investors to apply to be lead plaintiffs by April 7, 2026, to protect their rights.
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