Overview

A class action lawsuit has been filed against Spirit Aviation Holdings, Inc. (“Spirit” or the “Company”) and certain of the Company’s current and former senior executive officers alleging violations of the federal securities laws. The Company’s common stock traded in an efficient market on the NYSE under the ticker symbol “FLYY,” after which it began trading on the OTC market under the ticker symbol “FLYYQ.”

The Spirit class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired Spirit securities between May 28, 2025, and August 29, 2025, both dates inclusive, (the “Class Period”).

Spirit is the parent company of Spirit Airlines, an ultra-low-cost American airline that provides passenger air transportation services for destinations throughout the U.S., Latin America, and the Caribbean.

In November 2024, its predecessor entity, Spirit Airlines, Inc., along with its subsidiaries, filed for Chapter 11 bankruptcy after years of mounting losses and growing competition. By March 2025, the debtors completed a pre-arranged reorganization plan, emerging from bankruptcy with a new corporate structure. As part of this process, Spirit became the parent company, while the predecessor entity was converted into a Delaware limited liability company and made a wholly owned subsidiary.

In April 2025, Spirit announced that its common stock had been approved for listing on the NYSE American under the ticker symbol “FLYY.” Company executives presented this milestone as evidence that Spirit had regained financial stability and was well-positioned to operate successfully as a publicly traded airline. They touted improvements in liquidity, financial condition, and business operations, suggesting that the reorganization had placed Spirit on solid footing despite challenging market conditions.

The lawsuit alleges, however, that these representations were materially false and misleading. According to the claims, Spirit and its executives overstated enhancements to the company’s financial health and liquidity while concealing that the airline remained at substantial risk of default. The suit asserts that Spirit faced the possibility of another Chapter 11 filing within months of emerging from bankruptcy and that adverse market conditions were having far greater negative effects than the company acknowledged.

On August 11, 2025, Spirit filed a quarterly report with the SEC revealing “substantial doubt” about its ability to continue as a going concern within twelve months, citing adverse market conditions and minimum liquidity covenants in its debt obligations and credit card processing agreements. Following this disclosure, Spirit’s stock price dropped more than 40%, falling to $2.10 per share on August 12, 2025.

Just weeks later, on August 29, 2025, Spirit announced that it had again filed for Chapter 11 bankruptcy in the Southern District of New York. The company disclosed that its shares would be cancelled and rendered worthless as part of the restructuring. On September 2, 2025, the NYSE suspended trading of Spirit’s stock and began delisting proceedings. Spirit’s shares began trading over-the-counter under the ticker “FLYYQ” on September 3, 2025, losing an additional 58% of their value and closing at $0.51 per share.

The lawsuit asserts that, as a direct result of these alleged misrepresentations and omissions, investors were misled about Spirit’s true financial condition and stability. When the truth was revealed, the value of Spirit’s securities collapsed, causing plaintiffs and other class members to suffer significant financial losses.

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If you purchased or otherwise acquired Spirit securities between May 28, 2025, and August 29, 2025, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as lead plaintiff in the Spirit class action lawsuit is December 1, 2025.