Core Viewpoint - A class action lawsuit has been filed against Red Cat Holdings, Inc. for violations of securities laws, specifically related to misleading statements about production capabilities and contract valuations [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Red Cat made false and misleading statements regarding the production capabilities of its Salt Lake City facility [2]. - The company allegedly inflated the value of its Short Range Reconnaissance Program of Record Tranche 2 agreement, leading to materially false public disclosures throughout the class period [2]. - Investors who purchased securities between March 18, 2022, and January 15, 2025, are encouraged to participate in the lawsuit [1]. Group 2: Law Firm Background - DJS Law Group specializes in securities class actions, corporate governance litigation, and M&A appraisals, focusing on enhancing investor returns through advocacy [3]. - The firm represents some of the largest hedge funds and alternative asset managers, emphasizing the value of litigation claims as significant assets [3].

Core Points - The Gross Law Firm has issued a notice to shareholders of Red Cat Holdings, Inc. regarding a class action lawsuit [1] - The class period for the lawsuit is from March 18, 2022, to January 15, 2025 [3] - Allegations include that the company overstated the production capacity of its Salt Lake City Facility and the value of the U.S. Army's Short Range Reconnaissance Program contract [3] Shareholder Information - Shareholders are encouraged to register for the class action by the deadline of July 22, 2025 [4] - Registration allows shareholders to receive updates through portfolio monitoring software [4] - There is no cost or obligation for shareholders to participate in the case [4] Legal Representation - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investors' rights [5] - The firm aims to recover losses incurred by investors due to false or misleading statements from companies [5]

Core Viewpoint - The recent passage of the Trump administration's One Big, Beautiful Bill provides $150 billion in additional defense spending, bringing total U.S. defense spending close to $1 trillion, presenting potential investment opportunities in the defense sector [1]. Group 1: Industry Overview - The Pentagon is initiating a five- to ten-year modernization effort focused on drone-centric and autonomous systems [2]. - This shift in focus suggests that investors should look beyond large-cap defense stocks like Lockheed Martin and General Dynamics to include smaller, niche companies specializing in the drone industry [3]. Group 2: Company Analysis - AeroVironment - AeroVironment is a leader in supplying small tactical drones to the U.S. military and allies, with a strong balance sheet [5]. - The company reported a 39% year-over-year revenue increase and a 274% increase in earnings per share in its last quarter [6]. - AeroVironment plans to raise up to $1.5 billion in new capital to support growth, despite a 6% decline in stock price following the announcement [7]. - The stock is currently trading at 78 times forward earnings, indicating a healthy pullback for potential investors [8]. Group 3: Company Analysis - Red Cat - Red Cat focuses on rugged, military-grade drones and has secured contracts with the U.S. Army and Customs and Border Protection, but is currently not profitable [9][10]. - The company projects revenue of $80-$120 million for 2025 and has seen its stock rise over 100% in the last three months, partly due to short covering [10]. - For risk-tolerant investors, Red Cat represents a long-term opportunity, but a gradual investment approach is advisable to mitigate short-term risks [11]. Group 4: Company Analysis - Kratos Defense - Kratos Defense is positioned to play a significant role in the Pentagon's push for drone dominance, with its Valkyrie program focusing on low-cost, autonomous tactical drones [13][14]. - The company generated approximately $1 billion in revenue in 2024 and is currently profitable, but its stock appears overvalued after a 98% increase in 2025 [15]. - Rising short interest may lead to a decline in stock price, potentially creating a buying opportunity [15].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Red Cat Holdings, Inc. securities during the specified Class Period of the upcoming lead plaintiff deadline on July 22, 2025, and the potential for compensation without out-of-pocket costs [1][2]. Group 1: Class Action Details - Investors who bought Red Cat securities between March 18, 2022, and January 15, 2025, may be eligible for compensation through a class action lawsuit [1][2]. - A class action lawsuit has already been filed, and interested parties must act by the lead plaintiff deadline to participate [2][5]. - The lawsuit alleges that Red Cat made false and misleading statements regarding its production capacity and the value of its contracts, leading to investor damages when the truth was revealed [4]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own success in this area [3]. - The firm has achieved significant settlements, including the largest securities class action settlement against a Chinese company at the time, and has consistently ranked highly in terms of settlements since 2013 [3]. - In 2019, the firm secured over $438 million for investors, showcasing its capability in recovering funds for clients [3].

Core Viewpoint - Red Cat Holdings, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims of misleading statements regarding production capacity and contract values during the specified class period [1][3]. Company Overview - Red Cat Holdings, Inc. operates in the drone industry, providing products and solutions, including the "Teal 2" drone designed for military operations [2]. Allegations of the Lawsuit - The lawsuit alleges 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 for Q1 fiscal year 2025, 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 claimed that the SRR contract was smaller and less favorable than previously indicated by Red Cat, resulting in a stock price decline of more than 21% over two trading sessions [6].

Core Viewpoint - Red Cat Holdings, Inc. is facing a class action lawsuit due to allegations of misleading statements regarding its production capacity and the value of its contracts, leading to significant stock price declines during the class period from March 18, 2022, to January 15, 2025 [1][3]. Group 1: Allegations and Misleading Statements - The lawsuit claims that Red Cat overstated the production capacity of its Salt Lake City facility and the potential of its Short Range Reconnaissance Program of Record Tranche 2 contract [3]. - On July 27, 2023, Red Cat revealed that its Salt Lake City facility could only produce 100 drones per month, which was a significant reduction from previously stated expectations [4]. - Following this disclosure, Red Cat's stock price fell nearly 9% [4]. Group 2: Financial Performance and Impact - On September 23, 2024, Red Cat reported a first-quarter fiscal year 2025 loss of $0.17 per share, missing expectations, and revenue of $2.8 million, which was $1.07 million below forecasts [5]. - The company admitted that retooling its Salt Lake City facility for high-volume production and pausing manufacturing of the Teal 2 directly impacted sales, resulting in a stock decline of over 25% [5]. Group 3: Further Developments and Stock Decline - On January 16, 2025, Kerrisdale Capital published a report questioning the validity of the SRR contract, stating it was smaller and less favorable than previously communicated [6]. - This report raised concerns about the feasibility of constructing a mass-production facility within two years with an investment of less than $1 million, leading to a stock decline of more than 21% over the following two trading sessions [6].

Core Viewpoint - A class action securities lawsuit has been filed against Red Cat Holdings, Inc. for alleged securities fraud affecting investors between March 18, 2022, and January 15, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that the defendants made false statements regarding the production capacity of the Salt Lake City Facility and the value of the U.S. Army's Short Range Reconnaissance Program of Record Tranche 2 contract, leading to materially false and misleading public statements [2]. - Investors who suffered losses during the specified timeframe have until July 22, 2025, to request to be appointed as lead plaintiff, although participation does not require serving in this role [3]. Group 2: Legal Representation - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the U.S. [4].

Core Viewpoint - A class action securities lawsuit has been filed against Red Cat Holdings, Inc. for alleged securities fraud affecting investors between March 18, 2022, and January 15, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that the defendants made false statements regarding the production capacity of the Salt Lake City Facility and the value of the U.S. Army's Short Range Reconnaissance Program of Record Tranche 2 contract, leading to materially false and misleading public statements [2]. - Investors who suffered losses during the specified timeframe have until July 22, 2025, to request to be appointed as lead plaintiff, although participation does not require serving in this role [3]. Group 2: Legal Representation - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the U.S. [4].

CHONGQING, CHINA - MAY 11: In this photo illustration, the logo of Red Cat Holdings, Inc. is ... More displayed on a smartphone screen, with the company's red branding and stylized cat face emblem visible in the background, on May 11, 2025, in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)Getty ImagesRed Cat Holdings (NASDAQ:RCAT) has experienced a remarkable increase in its stock by 500% over the past year, mainly due to its strategic emphasis on the rapidly expanding drone defense sector ...

NEW YORK, July 17, 2025 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Red Cat Holdings, Inc. (NASDAQ: RCAT) between March 18, 2022 and January 15, 2025, both dates inclusive (the “Class Period”), of the important July 22, 2025 lead plaintiff deadline. SO WHAT: If you purchased Red Cat securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement ...