RCAT INVESTOR ALERT: Robbins Geller Rudman & Dowd LLP Announces that Red Cat Holdings, Inc. Investors with Substantial Losses Have Opportunity to Lead the Red Cat Class Action Lawsuit

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].