RCAT INVESTOR DEADLINE: Red Cat Holdings, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

Core Viewpoint - The article discusses a class action lawsuit against Red Cat Holdings, Inc. for alleged violations of the Securities Exchange Act of 1934, involving misleading statements about the company's production capacity and contract values [1][3]. Company Overview - Red Cat Holdings, Inc. operates in the drone industry, providing products such as the "Teal 2" drone, which is designed for military operations [2]. Allegations of the Lawsuit - The lawsuit claims that Red Cat and its executives made false statements regarding the production capacity of its Salt Lake City facility, overstating its capabilities [3]. - It is alleged that the overall value of Red Cat's Short Range Reconnaissance Program of Record Tranche 2 contract was also overstated [3]. Key Events Impacting Stock Price - On July 27, 2023, Red Cat disclosed that its Salt Lake City facility could only produce 100 drones per month, leading to a nearly 9% drop in stock price [4]. - Following the announcement of Q1 fiscal year 2025 results on September 23, 2024, which included a loss per share of $0.17 and revenue of $2.8 million, the stock price fell more than 25% [5]. - A report by Kerrisdale Capital on January 16, 2025, alleged that the SRR contract was less favorable than previously indicated, resulting in a more than 21% decline in stock price over two trading sessions [6]. Legal Process for Lead Plaintiff - Investors who purchased Red Cat securities during the class period can seek appointment as lead plaintiff, representing the interests of the class [7].