Rosen Law Firm Files Class Action Against Paysafe Limited
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Should l Buy PSFE?
Source: Businesswire
- Lawsuit Background: Rosen Law Firm has initiated a class action lawsuit on behalf of investors who purchased Paysafe Limited (NYSE: PSFE) securities between March 4 and November 12, 2025, alleging that the company misled investors regarding its business operations.
- Key Allegations: The lawsuit claims that Paysafe's e-commerce business had significant exposure to a single high-risk client, resulting in understated credit loss reserves and write-offs, and undisclosed issues with high-risk Merchant Category Codes that complicated banking for its client services.
- Financial Impact: These issues are likely to materially negatively affect Paysafe's revenue growth and overall revenue mix, making it unlikely for the company to meet its previously issued financial guidance for fiscal year 2025, thus exposing investors to potential losses.
- Next Steps: Investors may apply to serve as lead plaintiffs in the class action by April 7, 2026, representing other members in directing the litigation, with all representation on a contingency fee basis, meaning shareholders incur no fees or expenses.
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Analyst Views on PSFE
Wall Street analysts forecast PSFE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSFE is 10.22 USD with a low forecast of 7.00 USD and a high forecast of 14.10 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 7.110
Low
7.00
Averages
10.22
High
14.10
Current: 7.110
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.
- Lawsuit Background: Rosen Law Firm has initiated a class action lawsuit on behalf of investors who purchased Paysafe Limited (NYSE: PSFE) securities between March 4 and November 12, 2025, alleging that the company misled investors regarding its business operations.
- Key Allegations: The lawsuit claims that Paysafe's e-commerce business had significant exposure to a single high-risk client, resulting in understated credit loss reserves and write-offs, and undisclosed issues with high-risk Merchant Category Codes that complicated banking for its client services.
- Financial Impact: These issues are likely to materially negatively affect Paysafe's revenue growth and overall revenue mix, making it unlikely for the company to meet its previously issued financial guidance for fiscal year 2025, thus exposing investors to potential losses.
- Next Steps: Investors may apply to serve as lead plaintiffs in the class action by April 7, 2026, representing other members in directing the litigation, with all representation on a contingency fee basis, meaning shareholders incur no fees or expenses.
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- Class Action Initiated: Robbins LLP reminds shareholders of a class action filed on behalf of investors who purchased Paysafe Limited (NYSE:PSFE) securities between March 4 and November 12, 2025, aimed at protecting investor rights and seeking compensation.
- Allegation Details: The lawsuit alleges that Paysafe failed to disclose significant reliance on a single high-risk client in its e-commerce business, resulting in understated credit loss reserves and write-offs, which negatively impacted the company's revenue growth and overall revenue mix.
- Stock Price Plummet: 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, reflecting market concerns over the company's financial health.
- Call to Action for Shareholders: Shareholders wishing to serve as lead plaintiffs in the class action must submit their papers by April 7, 2026, with Robbins LLP ensuring no fees are charged, thereby protecting shareholders from financial risk during the litigation.
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- Lawsuit Background: Bernstein Liebhard LLP announced that Paysafe Limited (NYSE: PSFE) is facing a securities class action lawsuit due to false statements regarding its revenue growth and overall revenue mix made between March 4 and November 12, 2025, which could negatively impact the company's reputation and stock price.
- Shareholder Action: Investors can participate in the lawsuit by submitting a form or contacting Investor Relations Manager Peter Allocco, with a deadline of April 7, 2026; failure to act will result in becoming an absent class member, potentially affecting their future claims.
- Law Firm's Strength: Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has been recognized multiple times on The National Law Journal’s “Plaintiffs’ Hot List” for its success in handling hundreds of class actions, showcasing its strong position in securities litigation.
- Fee Structure: All representation is on a contingency fee basis, meaning shareholders incur no fees or expenses, which lowers the barrier for investor participation in the lawsuit and may attract more shareholders to join the class action.
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- Earnings Miss: Paysafe reported Q3 2025 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 prior 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 significant issues in managing high-risk clients that may further impact future financial performance.
- Stock Price Plunge: 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 on unusually high trading volume, reflecting strong market concerns regarding the company's outlook.
- Class Action Initiated: A class action lawsuit has been filed against Paysafe, alleging that the company failed to disclose critical adverse facts related to high-risk clients during the class period, misleading investors and potentially causing long-term negative impacts on the company's financing and operations.
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- Lawsuit Background: Paysafe Limited (NYSE: PSFE) is facing a shareholder class action lawsuit alleging the issuance of false and misleading statements, failing to disclose material adverse facts regarding its business, operations, and prospects, which could expose the company to significant financial risks.
- Client Risk Exposure: The lawsuit highlights that Paysafe's e-commerce business has significant exposure to a single high-risk client, potentially leading to understated credit loss reserves and write-offs, thereby affecting the company's financial stability.
- Merchant Category Issues: Additionally, Paysafe has undisclosed issues with higher-risk Merchant Category Codes, making its client services difficult to bank, which could further exacerbate the company's financial pressures.
- Financial Guidance Shortfall: As a result of these issues, Paysafe is unlikely to meet its previously issued financial guidance for fiscal year 2025, indicating a negative impact on future revenue growth and overall revenue mix.
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- Lawsuit Announcement: Robbins LLP informs investors of a class action filed against Paysafe Limited (NYSE: PSFE) for securities transactions between March 4, 2025, and November 12, 2025, alleging failure to disclose critical business risks that may have led to investor losses.
- Business Risk Exposure: The complaint indicates that Paysafe's e-commerce operations had significant reliance on a single high-risk client, resulting in understated credit loss reserves and write-offs, which could adversely affect the company's financial health and future growth potential.
- Financial Guidance Missteps: Due to undisclosed issues with higher-risk Merchant Category Codes, Paysafe faced banking difficulties in client services, making it unlikely for the company to meet its previously issued financial guidance for fiscal year 2025, raising further investor concerns.
- Stock Price Volatility: Following the revelation of these issues, Paysafe's stock price plummeted by $2.80, or 27.6%, closing at $7.36 per share on November 13, 2025, reflecting the market's strong reaction to the company's outlook.
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