RED CAT (RCAT) ALERT: Bragar Eagel & Squire, P.C. is Investigating Red Cat Holdings, Inc. on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Red Cat Holdings, Inc. due to allegations of misleading statements and breaches of fiduciary duties by the company's board of directors during a specified class period [2][4]. Company Overview - Red Cat Holdings, Inc. operates in the drone industry, providing products and solutions, including the "Teal 2" drone designed for nighttime military operations [3]. Legal Allegations - The class action lawsuit against Red Cat claims that the company made false or misleading statements regarding its production capacity at the Salt Lake City facility and the value of its Short Range Reconnaissance Program contract [4]. - 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 [5]. - Following this announcement, Red Cat's stock price fell nearly 9% [5]. - On September 23, 2024, Red Cat reported a loss per share of $0.17 and revenue of $2.8 million, both missing consensus estimates, leading to a stock price drop of over 25% [6]. - A report published by Kerrisdale Capital on January 16, 2025, alleged that the SRR contract was smaller and less favorable than previously indicated, resulting in a stock price decline of more than 21% [7].