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

Core Viewpoint - The Red Cat Holdings, Inc. is facing a class action lawsuit alleging securities fraud, with claims that the company and its executives made misleading statements regarding production capacity and contract values, leading to significant stock price declines during the class period from March 18, 2022, to January 15, 2025 [1][3][4][5][6]. Company Overview - Red Cat Holdings, Inc. operates in the drone industry, providing products and solutions, 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]. - On September 23, 2024, Red Cat reported a loss per share of $0.17, missing estimates by $0.09, and revenue of $2.8 million, missing estimates by $1.07 million, leading to a stock price drop of over 25% [5]. - A report published on January 16, 2025, alleged that the SRR contract was smaller and less favorable than previously indicated, causing the stock price 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 class action lawsuit, which allows them to act on behalf of other class members [7]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [8][9].