Were Paysafe's Risk Disclosures Adequate? Levi & Korsinsky, LLP Examines SEC Filings

Disclosure Under Scrutiny: Were Risk Warnings Adequate?

NEW YORK, March 23, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP examines the adequacy of Paysafe Limited's (NYSE: PSFE) risk disclosures. THE CASE: A securities action covering March 4, 2025 through November 12, 2025 questions whether generic risk language met disclosure obligations.

Get a no-obligation case review or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com | (212) 363-7500.

Paysafe's FY24 20-F warned that policy changes "could impact the merchant category code assignments" and that sponsor bank risk appetite "may impact appetite for volume and/or merchant categories." SEC filings stated these as hypothetical possibilities. The complaint challenges whether these warnings were adequate when the described risks were allegedly already materializing.

What the Company Disclosed

The annual report contained standard risk factor language about banking relationships, Merchant Category Code policy changes, and sponsor bank risk appetite. The Company also stated it had a "strong global banking infrastructure" spanning nearly 100 commercial banks across 34 countries.

What Plaintiffs Allege Was Missing

The complaint challenges the adequacy of these disclosures. While the risk factors warned of theoretical possibilities, the lawsuit alleges that the Company knew the described banking challenges were already occurring in its noncore ecommerce segment, not merely possible future risks.

Disclosure Gaps Alleged

• Risk factors used conditional language ("could," "may") to describe banking challenges that were allegedly already underway
• The Company touted strong banking relationships while allegedly experiencing difficulty placing higher-risk merchant volumes
• Credit loss allowance tables presented in quarterly filings allegedly did not reflect the concentrated risk from an individual merchant
• Financial guidance was affirmed three times without disclosure that merchant portfolio issues made those projections unreliable
• The "strong global banking infrastructure" claim was allegedly misleading given difficulties banking certain merchant categories
  

Why Generic Warnings May Not Protect

Securities law distinguishes between general risk factor warnings about what "could" happen and the obligation to disclose material facts that are already affecting operations. The complaint contends that Paysafe's disclosures fell short of this standard by presenting active problems as mere possibilities.

"Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company's operations. Investors are entitled to know not just what might happen, but what is happening," stated Joseph E. Levi, Esq.

LEAD PLAINTIFF DEADLINE: April 7, 2026

Discuss your rights with experienced securities counsel or call (212) 363-7500.

Levi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors.

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