Company: FLYE
Filing Date: 2025-12-18
Form Type: 10-Q
Source: 0001213900-25-123281
Chunk: 290

Company: Fly-E Group, Inc.
Filing Date: 2025-12-18
Form: 10-Q
Item: Item 2
Chunk 290
---

operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met.
Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits
must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation
of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances
of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control over Financial
Reporting

There was no change in our internal control over
financial reporting that occurred during the period covered by this Report that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.

54

PART II - Other Information

Item
1. Legal Proceedings.

From time to time, we may be subject to legal
proceedings arising in the ordinary course of business. Regardless of the outcome of any existing or future litigation, litigation can
have an adverse impact on us because of defense and settlement costs, diversion of 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