Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 361

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 4
Chunk 361
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 management resources, and other factors.

Federal securities class action instituted
on September 8, 2025

On September 8, 2025, a federal securities class
action was filed in the United States District Court, Eastern District of New York, by plaintiff Dino Kurt, individually and on behalf
of all others similarly situated, against defendants, the Company, chief executive officer (the "CEO") Zhou Ou, and former chief
financial officer (the "CFO") Shiwen Feng. The complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act
and Rule 10b-5 during the class period spanning from July 15, 2025, to August 14, 2025. The plaintiff claims that defendants provided
materially false and misleading positive statements about revenue growth, brand reputation, and business expansion, while concealing or
minimizing material adverse facts concerning the safety of the Company’s lithium battery and inadequate forecasting processes, which
were already taking a material toll on E-vehicle (the "EV") sales revenue. The plaintiff alleged when the Company filed a form
NT 10-Q on August 14, 2025, which disclosed a 32% decrease in net revenues primarily driven by a decline in total units sold, attributed
by the Company to "recent lithium-battery accidents involving E-Bikes and E-Scooters"; the price of Company’s common stock
declined dramatically by about 87% in a single day, resulting in economic loss for the plaintiff and the class.

The relief sought includes determining that the
action may be maintained as a class action, requiring defendants to pay damages sustained by the plaintiff and the class, and awarding
pre-judgment and post-judgment interest, along with reasonable attorneys’ fees, expert fees, and other costs, with the monetary
damages sought being certified to be in excess of $150,000.00.

Shareholder derivative action instituted
on November 17, 2025

An action titled Kishan Shah, derivatively on
behalf of FLY-E GROUP, INC. v. Zhou Ou, et al., was instituted on November 17, 2025 and is pending in the United States District Court,
Eastern District of New York.

The principal parties include plaintiff Kishan
Shah, representing the Company (the nominal defendant), against Individual defendants Zhou Ou, the Company's CEO and Chairman,  Shiwen
Feng, the Company