Red Cat (RCAT) GlobeNewswire News Room·2025-05-28 19:10Core 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].