Fly-E Group, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Fly-E Group, Inc. (FLYE).

If you purchased or held Fly-E Group securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Fly-E Group

Fly-E Group, Inc. is a company that operates in the electric vehicle sector, with a focus on e-bikes. The company has promoted its products as being UL-certified and safe for consumer use. Fly-E Group’s business activities and public statements have centered on the safety and reliability of its e-bike offerings.

The company’s filings, including its 10-K filed July 15, 2025, referenced a settlement with UL (Underwriters Laboratories), a prominent safety certification organization. This settlement is related to issues raised about Fly-E Group’s use of UL trademarks and certifications.

Potential Concerns Under Investigation

Lawyers may investigate whether Fly-E Group made misleading statements regarding the safety and certification of its e-bikes. On Aug. 15, 2025, Fly-E Group’s stock price collapsed by 87 percent in a single trading session after The Bear Cave published a pre-market short-seller report. This report accused the company of operating a pump-and-dump scheme, using fake safety certifications, and having links to fatal battery fires. The report introduced new, specific facts, including allegations of UL trademark counterfeiting, 77 city violations, and connections to deadly fires. These details were not previously in the public domain and appear to challenge Fly-E Group’s repeated assurances that its e-bikes are UL-certified and safe.

The investigation may focus on whether Fly-E Group adequately disclosed regulatory and product-safety problems to investors. The timing of the stock price decline, which occurred within one trading session and on outsized volume, while the broader market and electric vehicle peers were flat, could indicate that the drop was company-specific and tied to the newly revealed information. Lawyers might examine whether the company’s prior statements about safety certifications and compliance were accurate and complete.

Additionally, attorneys could investigate if Fly-E Group’s settlement with UL, disclosed in its 10-K on July 15, 2025, confirms the underlying conduct highlighted in The Bear Cave’s report. Legal professionals may review whether shareholders were informed about the scope and seriousness of the regulatory and product-safety issues before the corrective disclosure. The potential harm to investors, as reflected by the 87 percent stock price drop, may become a central focus of the investigation.

Your Rights and Next Steps

Investors who purchased or held Fly-E Group securities and suffered losses may have legal rights. This is an ongoing investigation, not a filed lawsuit, and lawyers are ready to help determine whether potential securities law violations occurred. If the investigation uncovers evidence of misconduct or inadequate disclosures, it could lead to a class action lawsuit on behalf of affected shareholders.

Investors are encouraged to gather records of their Fly-E Group purchases, sales, and account statements. By participating in the investigation, investors may help ensure that their interests are represented and that any potential wrongdoing is addressed. Lawyers are available to answer questions and provide guidance on the next steps.

You May Be Entitled to Compensation

Securities investigations are often time-sensitive. Investors who purchased Fly-E Group securities and experienced losses may be eligible to join any potential class action and seek compensation for their losses. To protect your rights and learn more about the investigation, complete the form below to join the investigation.