Red Cat (US:RCAT) Prnewswireยท2025-06-01 12:12Core 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].