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NORTHBROOK, Ill. - UL Solutions Inc. (NYSE: ULS), a company specializing in safety science, has filed a lawsuit against Fly-E Group, Inc. (NYSE: FLYE) and its subsidiaries for purportedly counterfeiting and misusing the UL Mark on their e-mobility products. The legal action comes at a challenging time for Fly-E Group, whose stock has declined nearly 90% over the past year and currently trades at $0.48 per share. The suit, filed in a U.S. federal court, alleges that Fly-E Group’s e-bikes, e-scooters, and e-motorcycles bear the UL Mark, indicating they are UL Certified, despite not having undergone UL Solutions’ testing.
The complaint accuses Fly-E Group of engaging in federal trademark infringement, counterfeiting, and deceptive business practices. According to the allegations, the unauthorized use of the UL Mark, which has symbolized safety and trust since 1937, was intended to mislead consumers about the safety certification of their products. InvestingPro data reveals the company faces significant financial challenges, with short-term obligations exceeding liquid assets and rapidly depleting cash reserves.
UL Solutions is seeking a permanent injunction to prevent further unauthorized use of its trademarks, statutory damages, and punitive damages for what it claims is intentional infringement and a reckless disregard for consumer and public safety.
Moreover, the company alleges that Fly-E Group has engaged in unfair competition, unjust enrichment, and deceptive trade practices in violation of New York common law and the New York Deceptive Trade Practices Act. Financial metrics from InvestingPro show concerning trends, with the company reporting negative EBITDA of $590,000 and weak gross profit margins of 43%. Get access to 8 more crucial ProTips and comprehensive financial health metrics with an InvestingPro subscription.
The UL Mark is recognized globally on billions of products as a certification that they meet rigorous safety, performance, or security standards. UL Solutions provides testing, inspection, and certification services, along with software products and advisory offerings, to support customer innovation and business growth in over 110 countries.
UL Solutions is requesting a trial by jury to resolve the issues raised in the complaint. This legal action underscores the company’s commitment to protecting its trademark and ensuring consumer trust in product safety certifications.
The information for this report is based on a press release statement from UL Solutions Inc.
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