A securities class action has been filed against Spirit Aviation Holdings, Inc. (FLYYQ) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Spirit securities between May 28, 2025 through August 29, 2025. This case has been filed in the USDC – DE.
Spirit is the parent company of Spirit Airlines, LLC, an ultra-low-cost American airline that provides passenger air transportation services for destinations throughout the United States (“U.S.”), Latin America, and the Caribbean.
In November 2024, Spirit’s predecessor entity, Spirit Airlines, Inc. (“Former Spirit”) and its subsidiaries (collectively with Former Spirit, the “Corporate Debtors”) filed a voluntary petition for Chapter 11 bankruptcy protection after years of mounting losses and increased competition, among other issues.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding Spirit’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Spirit was at substantial risk of being unable to meet certain of its debt and other financial obligations; (ii) Spirit was also at substantial risk of being forced to file for Chapter 11 bankruptcy protection within a mere matter of months; (iii) accordingly, Defendants had overstated enhancements to Spirit’s financial condition, liquidity, and overall business and operations, while simultaneously downplaying the negative impacts of adverse market conditions on the same; and (iv) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
Following the foregoing disclosures and developments, Spirit’s stock price fell $0.71 per share, or 58.2%, to close at $0.51 per share on September 3, 2025-the first day that the Company’s common stock began trading on the over-the-counter market under the ticker symbol “FLYYQ.”