How large is the potential liability exposure for Flywire if the class action proceeds to settlement or judgment?

Potential liability exposure:

The filing notes that “investors with losses in excess of $100,000” may qualify as lead‑plaintiffs, which signals that individual claims could easily run into six‑figure amounts. In a securities class action the damages are typically multiplied by the number of shareholders who suffered similar losses. Even a modestly sized class (dozens of investors) would push total exposure into the low‑to‑mid‑hundreds of millions of dollars; a larger class could drive the liability well above a $1 billion ceiling. In short, Flywire faces a potential liability that is significantly larger than the $100 k per‑investor threshold mentioned in the alert.

Trading implications:

The market is already pricing in a heightened risk premium – the stock’s sentiment is –70 and the price has been under pressure since the alert. Expect continued volatility, especially as the September 23 lead‑plaintiff deadline approaches. Short‑term traders may look for a bearish breakout on the daily chart (e.g., break below the 20‑day moving average with rising volume) to capture further downside, while long‑term holders should assess whether the potential settlement cost (which could be hundreds of millions) materially alters Flywire’s balance sheet and cash‑flow projections. A settlement or judgment in Flywire’s favor would likely trigger a rapid up‑move, so maintaining a small hedge (e.g., buying out‑of‑the‑money calls) could be a prudent way to capture upside while limiting downside exposure.