DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Red Cat Holdings

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Red Cat Holdings, Inc. for alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status in a class action lawsuit by July 21, 2025 [3][5]. Group 1: Allegations Against Red Cat - The complaint alleges that Red Cat and its executives made false and misleading statements regarding the production capacity of the Salt Lake City Facility and the overall value of the SRR Contract [5][8]. - It is claimed that the production capacity of the Salt Lake City Facility was overstated, with management initially suggesting it could produce thousands of drones per month, but later revealing it could only produce 100 drones per month [9][10]. - The SRR Contract was initially suggested to be worth potentially hundreds of millions to over a billion dollars, but subsequent reports indicated it was only valued at approximately $20 million to $25 million [12][13]. Group 2: Financial Impact and Stock Performance - Following the disclosure of the actual production capacity and the status of the Salt Lake City Facility, Red Cat's stock price fell by 8.93% to close at $1.02 per share on July 28, 2023 [10]. - After reporting losses per share of $0.17 and revenue of $2.8 million, which missed consensus estimates, the stock price dropped by 25.32% to close at $2.36 per share on September 25, 2024 [11]. - A significant drop of 21.54% occurred after the Kerrisdale Report was published, which questioned the company's previous claims, leading to a stock price of $8.56 per share on January 17, 2025 [14]. Group 3: Company Background and Legal Context - 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 drones to Army platoons [6]. - The law firm Faruqi & Faruqi has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [4]. - Investors who suffered losses are encouraged to contact the firm for discussions regarding their legal rights and options [1][16].