Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Red Cat Holdings, Inc. due to allegations of misleading statements regarding the company's production capacity and contract values, which have led to significant stock price declines for investors [2][4][12]. Group 1: Allegations and Legal Actions - The complaint alleges that Red Cat and its executives violated federal securities laws by making false and misleading statements about the production capacity of the Salt Lake City Facility and the overall value of the SRR Contract [4][6]. - Investors who suffered losses from purchasing Red Cat securities between March 18, 2022, and January 15, 2025, are encouraged to discuss their legal rights with Faruqi & Faruqi [1][2]. - A federal securities class action has been filed against Red Cat, with a deadline of July 21, 2025, for investors to seek the role of lead plaintiff [2][14]. Group 2: Company Performance and Stock Impact - Red Cat's stock price fell by $0.10 per share (8.93%) to close at $1.02 on July 28, 2023, following disclosures about the actual production capacity of the Salt Lake City Facility being only 100 drones per month [8][7]. - On September 25, 2024, Red Cat's stock price dropped by $0.80 per share (25.32%) after the company reported losses per share of $0.17 and revenue of $2.8 million, missing consensus estimates [10][9]. - After Kerrisdale Capital published a report on January 16, 2025, alleging that the SRR Contract was worth only $20 million to $25 million, Red Cat's stock price fell by $2.35 per share (21.54%) to close at $8.56 on January 17, 2025 [12][13]. Group 3: Company Background and Initiatives - Red Cat was selected by the U.S. Department of Defense's Defense Innovation Unit to compete in the SRR Program, aimed at providing small, portable sUAS to U.S. Army platoons [5]. - The company has claimed that the SRR Contract could potentially generate hundreds of millions in revenue, with expectations of $50 million to $79.5 million in revenue during fiscal year 2025 [11].

Core Viewpoint - Red Cat Holdings, Inc. is under investigation for possible securities fraud, with a potential class action being considered for investors who suffered losses [1][2]. Company Developments - In March 2022, Red Cat's subsidiary, Teal Drones, was selected for the U.S. Army's Short Range Reconnaissance Program [3]. - The fiscal year 2023 results revealed that Red Cat's Salt Lake City facility was only "substantially completed," with a current production capacity of 100 drones per month, and full capacity of 1,000 drones expected to take 2-3 years and require additional capital [4]. - In the first quarter of fiscal 2025, Red Cat missed analyst expectations, attributing this to a retooling of the Salt Lake City facility and a pause in manufacturing, leading to a significant stock price drop of 25.3% [5]. - On November 19, 2024, Red Cat announced securing a contract with the U.S. Army, estimated to be worth "hundreds of millions," but a subsequent report questioned this valuation, suggesting it was only worth $20-25 million, resulting in a 21.5% stock price decline [6].

SAN DIEGO, May 29, 2025 /PRNewswire/ -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Red Cat Holdings, Inc. (NASDAQ: RCAT) securities between March 18, 2022 and January 15, 2025, both dates inclusive (the "Class Period"), have until July 22, 2025 to seek appointment as lead plaintiff of the Red Cat class action lawsuit. Captioned Olsen v. Red Cat Holdings, Inc., No. 25-cv-05427 (D.N.J.), the Red Cat class action lawsuit charges Red Cat and certain of Red Cat's t ...

Core Viewpoint - A securities class action lawsuit has been filed against Red Cat Holdings, Inc. for alleged misrepresentations regarding its production capacity and contract value, leading to significant financial harm for investors [1][6]. Group 1: Class Action Details - The lawsuit is on behalf of all persons or entities who purchased Red Cat securities [1]. - The class period for the lawsuit is from March 18, 2022, to January 15, 2025, with a lead plaintiff deadline set for July 22, 2025 [6]. Group 2: Allegations and Financial Impact - Allegations include misrepresentations about the production capacity of the Salt Lake City Facility, which was revealed to only produce 100 drones per month instead of the expected 1,000 [6]. - The overall value of the SRR Contract with the U.S. Department of Defense was also misrepresented, with potential revenues claimed to be between $50 million and $79.5 million for FY2025, while estimates were later revised down to $20 million to $25 million [6]. - Significant stock price declines were noted, including an 8.93% drop to $1.02 on July 28, 2023, a 25.32% drop to $2.36 on September 25, 2024, and a 21.54% drop to $8.56 on January 17, 2025, following corrective disclosures [6]. Group 3: Legal Representation - Wolf Haldenstein Adler Freeman & Herz LLP, a law firm with over 125 years of experience in securities litigation, is representing the investors in this case [4]. - The firm emphasizes its commitment to justice for investors who have suffered financial harm due to misrepresented statements [4].

Core Viewpoint - The Red Cat Holdings, Inc. is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, with claims of misleading statements regarding production capacity and contract values [1][3]. Company Overview - Red Cat Holdings, Inc. provides products and solutions to the drone industry, including the "Teal 2" drone designed for military operations [2]. Allegations of the Lawsuit - The lawsuit claims that Red Cat overstated the production capacity of its Salt Lake City facility and the value of its Short Range Reconnaissance Program contract [3]. - On July 27, 2023, Red Cat disclosed that its Salt Lake City facility could only produce 100 drones per month, with potential future capacity of 1,000 drones per month contingent on additional investments [4]. - Following this announcement, Red Cat's stock price fell nearly 9% [4]. Financial Performance - On September 23, 2024, Red Cat reported a loss per share of $0.17, missing consensus estimates by $0.09, and revenue of $2.8 million, missing estimates by $1.07 million [5]. - The company admitted that retooling its Salt Lake City facility impacted Teal 2 sales, leading to a stock price drop of over 25% [5]. Additional Allegations - On January 16, 2025, a report from Kerrisdale Capital alleged that the SRR contract was smaller and less favorable than previously indicated, causing Red Cat's stock to fall more than 21% over two trading sessions [6]. Legal Process - Investors who purchased Red Cat securities during the class period can seek appointment as lead plaintiff in the lawsuit, which allows them to act on behalf of other class members [7].

Group 1 - A class action has been filed on behalf of investors who purchased Red Cat Holdings, Inc. (NASDAQ: RCAT) securities between March 18, 2022, and January 15, 2025 [1] - The allegations include that Red Cat Holdings misled investors regarding its production capacity at the Salt Lake City Facility and overstated the value of the SRR Contract [2] - Kerrisdale Capital reported that the SRR Contract was valued between $20 million and $25 million, significantly lower than previously stated, leading to a 21.54% drop in Red Cat's stock price [3] Group 2 - Shareholders interested in serving as lead plaintiff have until July 22, 2025, to seek this status in the class action [4] - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4] - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses [5]

NEW YORK, May 27, 2025 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Red Cat Holdings, Inc. (“Red Cat” or “the Company”) (NASDAQ: RCAT) and certain of its officers. Class Definition This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Red Ca ...

Core Insights - Red Cat Holdings has partnered with ESAero to enhance manufacturing capacity for the Black Widow small unmanned aerial system (sUAS) [1][3] - The Black Widow drone is designed for short-range reconnaissance missions and has been selected for the U.S. Army's SRR Program of Record contract [2][5] - ESAero's AS9100 certified facilities will support Red Cat in scaling production to meet increasing demand from both U.S. and international customers [3][4] Company Overview - Red Cat Holdings, Inc. is a drone technology company focused on military, government, and commercial operations, with subsidiaries including Teal Drones and FlightWave Aerospace [5][6] - The Black Widow is part of a Family of Systems that includes other advanced drone technologies optimized for military applications [5] - ESAero specializes in unmanned aerial systems and advanced aerospace technologies, providing vertically integrated services in R&D, engineering, and production [6]

NEW YORK, May 27, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities who purchased the securities of Red Cat Holdings, Inc. (“Red Cat” or the “Company”) (NASDAQ: RCAT) between March 18, 2022 and January 15, 2025, both dates inclusive (the “Class Period”). The Complaint alleges that Defendants throughout the Class Period made false and/or misl ...

Core Points - A shareholder class action lawsuit has been filed against Red Cat Holdings, Inc. alleging that the company made materially false and misleading statements regarding its production capacity and the value of the SRR Contract [1] - The lawsuit claims that the defendants overstated the production capacity of the Salt Lake City Facility and the overall value of the SRR Contract, leading to misleading public statements [1] Legal Information - Shareholders who purchased Red Cat shares between March 18, 2022, and January 15, 2025, and suffered significant losses are encouraged to discuss their legal rights with the law firm Holzer & Holzer [2] - The deadline to request to be appointed as lead plaintiff in the case is July 22, 2025 [3]