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].

Core Viewpoint - Red Cat Holdings, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims of misleading statements regarding production capacity and contract values during the specified class period [1][3]. 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 alleges 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]. Financial Performance - On September 23, 2024, Red Cat reported a loss per share of $0.17 for Q1 fiscal year 2025, missing consensus estimates by $0.09, and revenue of $2.8 million, missing estimates by $1.07 million [5]. - The company admitted that retooling its Salt Lake City facility impacted Teal 2 sales, leading to a stock price drop of over 25% [5]. Additional Allegations - On January 16, 2025, a report from Kerrisdale Capital claimed that the SRR contract was smaller and less favorable than previously indicated by Red Cat, resulting in a stock price decline of more than 21% over two trading sessions [6].

Core Viewpoint - Red Cat Holdings, Inc. is facing a class action lawsuit due to allegations of misleading statements regarding its production capacity and the value of its contracts, leading to significant stock price declines during the class period from March 18, 2022, to January 15, 2025 [1][3]. Group 1: Allegations and Misleading Statements - The lawsuit claims that Red Cat overstated the production capacity of its Salt Lake City facility and the potential of its Short Range Reconnaissance Program of Record Tranche 2 contract [3]. - On July 27, 2023, Red Cat revealed that its Salt Lake City facility could only produce 100 drones per month, which was a significant reduction from previously stated expectations [4]. - Following this disclosure, Red Cat's stock price fell nearly 9% [4]. Group 2: Financial Performance and Impact - On September 23, 2024, Red Cat reported a first-quarter fiscal year 2025 loss of $0.17 per share, missing expectations, and revenue of $2.8 million, which was $1.07 million below forecasts [5]. - The company admitted that retooling its Salt Lake City facility for high-volume production and pausing manufacturing of the Teal 2 directly impacted sales, resulting in a stock decline of over 25% [5]. Group 3: Further Developments and Stock Decline - On January 16, 2025, Kerrisdale Capital published a report questioning the validity of the SRR contract, stating it was smaller and less favorable than previously communicated [6]. - This report raised concerns about the feasibility of constructing a mass-production facility within two years with an investment of less than $1 million, leading to a stock decline of more than 21% over the following two trading sessions [6].

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].

Core Viewpoint - A securities class action lawsuit has been filed against Red Cat Holdings, Inc. for alleged misrepresentations regarding its production capacity and contract value, leading to significant financial harm for investors [1][7]. Group 1: Lawsuit Details - The lawsuit is on behalf of all persons or entities who purchased Red Cat securities [1]. - The class period for the lawsuit is from March 18, 2022, to January 15, 2025, with a lead plaintiff deadline of July 22, 2025 [7]. - Allegations include misrepresentations about the production capacity of the Salt Lake City Facility and the overall value of the SRR Contract with the U.S. Department of Defense [7]. Group 2: Key Events Timeline - On July 27, 2023, Red Cat disclosed that the Salt Lake City Facility could only produce 100 drones per month, leading to an 8.93% stock drop to $1.02 on July 28, 2023 [7]. - On September 23, 2024, the company reported a Q1 FY2025 loss of $0.17 per share and revenue of $2.8 million, resulting in a 25.32% stock decline to $2.36 on September 25, 2024 [7]. - On November 19, 2024, Red Cat announced winning the SRR Contract, claiming potential revenues of $50–79.5 million for FY2025 [7]. - On January 16, 2025, a report from Kerrisdale Capital estimated the SRR Contract value at $20–25 million, causing the stock to fall 21.54% to $8.56 on January 17, 2025 [7]. Group 3: Impact of Allegations - The lawsuit claims that investors suffered significant financial harm due to alleged false or misleading statements made by Red Cat [7]. - Stock price declines are linked to corrective disclosures regarding the company's production capabilities and contract valuations [7].

Core 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, with a deadline for investors to seek lead plaintiff status in a federal securities class action by July 21, 2025 [3][5]. Group 1: Allegations and Misleading Statements - 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 [5][8]. - Defendants claimed that the SRR Contract could generate hundreds of millions to over a billion dollars in revenues, which was later contradicted by actual production capabilities [7][12]. - During a conference call on July 27, 2023, it was revealed that the Salt Lake City Facility could only produce 100 drones per month, contrary to earlier claims of thousands [9]. Group 2: Financial Performance and Stock Impact - Following the disclosure of the actual production capacity, Red Cat's stock price fell by $0.10 per share, or 8.93%, closing at $1.02 on July 28, 2023 [10]. - In the first quarter of fiscal year 2025, Red Cat reported losses per share of $0.17, missing consensus estimates by $0.09, and revenue of $2.8 million, missing estimates by $1.07 million [11]. - After the Kerrisdale Report on January 16, 2025, which alleged that the SRR Contract was worth only $20 million to $25 million, Red Cat's stock price fell by $2.35 per share, or 21.54%, closing at $8.56 on January 17, 2025 [13][14]. Group 3: Legal and Investor Actions - Investors who suffered losses exceeding $50,000 in Red Cat between March 18, 2022, and January 15, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal options [1][3]. - The firm is also seeking information from whistleblowers, former employees, and shareholders regarding Red Cat's conduct [16].

Core Viewpoint - Red Cat Holdings, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims of misleading statements regarding production capacity and contract values during the specified class period [1][3]. Company Overview - Red Cat Holdings, Inc. provides products and solutions to the drone industry, including the "Teal 2" drone designed for military operations [2]. Allegations of the Lawsuit - The lawsuit alleges that Red Cat overstated the production capacity of its Salt Lake City facility and the value of its Short Range Reconnaissance Program of Record Tranche 2 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]. Financial Performance - On September 23, 2024, Red Cat reported a loss per share of $0.17 for Q1 fiscal year 2025, missing consensus estimates by $0.09, and revenue of $2.8 million, missing estimates by $1.07 million [5]. - The company admitted that retooling its Salt Lake City facility impacted Teal 2 sales, leading to a stock price drop of over 25% [5]. Additional Allegations - On January 16, 2025, a report from Kerrisdale Capital claimed that the SRR contract was smaller and less favorable than previously indicated by management, leading to a stock price decline of more than 21% over two trading sessions [6].

Core Viewpoint - Red Cat Holdings, Inc. is facing a class action lawsuit due to alleged misleading statements regarding its production capacity and the value of its contracts, leading to significant stock price declines during the class period from March 18, 2022, to January 15, 2025 [1][3][4][5][6]. Group 1: Company Operations and Financial Performance - Red Cat Holdings provides products and solutions for the drone industry, including the "Teal 2" drone designed for nighttime military operations [3]. - The company overstated the production capacity of its Salt Lake City facility, claiming it could produce 1,000 drones per month, while it was only capable of producing 100 drones per month at the time of disclosure [4]. - In the first quarter of fiscal year 2025, Red Cat reported a loss of $0.17 per share, missing expectations, and generated $2.8 million in revenue, falling short by $1.07 million [5]. - The company paused manufacturing of the Teal 2 and delayed prototype builds for the U.S. Army, which directly impacted sales [5]. Group 2: Stock Price Impact - Following the disclosure of the actual production capacity on July 27, 2023, Red Cat's stock price fell nearly 9% [4]. - After the disappointing financial results reported on September 23, 2024, the stock declined over 25% [5]. - A report published by Kerrisdale Capital on January 16, 2025, questioned the feasibility of the SRR contract and led to a stock decline of more than 21% over the following two trading sessions [6].

Core 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 investor losses [2][4][12]. Group 1: Company Overview - Red Cat Holdings, Inc. (NASDAQ: RCAT) is involved in the production of small unmanned aerial systems (sUAS) for military applications, specifically under the U.S. Army's Short Range Reconnaissance Program [5][11]. - The company announced in March 2022 that it was selected to compete in the U.S. Army's SRR Program, which is aimed at providing portable sUAS to Army platoons [5]. Group 2: Allegations and Misleading Statements - The complaint against Red Cat alleges that the company overstated the production capacity of its Salt Lake City facility and the overall value of the SRR Contract, leading to materially false and misleading public statements [4][6]. - During a conference call on July 27, 2023, Red Cat revealed that the Salt Lake City facility could only produce 100 drones per month, contrary to earlier claims of thousands, and that the facility was still under construction [7]. - Following these disclosures, Red Cat's stock price fell by 8.93% to close at $1.02 per share on July 28, 2023 [8]. Group 3: Financial Performance and Stock Impact - In the first quarter of fiscal year 2025, Red Cat reported losses per share of $0.17, missing consensus estimates by $0.09, and revenue of $2.8 million, missing estimates by $1.07 million [9]. - After announcing a pause in manufacturing due to retooling the Salt Lake City facility, Red Cat's stock price dropped by 25.32% over two trading sessions, closing at $2.36 per share on September 25, 2024 [10]. - A report published by Kerrisdale Capital on January 16, 2025, alleged that the SRR Contract was worth only $20 million to $25 million, significantly lower than previously stated, leading to a further stock price decline of 21.54% [12][13]. Group 4: Legal Proceedings - Investors who suffered losses exceeding $50,000 in Red Cat between March 18, 2022, and January 15, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal options [1][2]. - The deadline to seek the role of lead plaintiff in the federal securities class action against Red Cat is July 21, 2025 [2].

Core 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, with a deadline for investors to seek lead plaintiff status in a federal securities class action by July 21, 2025 [2][4]. Group 1: Allegations and Misleading Statements - 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]. - Defendants claimed that the SRR Contract could generate hundreds of millions to over a billion dollars in revenues, which was later contradicted by actual production capabilities [6][12]. - During a conference call on July 27, 2023, it was revealed that the Salt Lake City Facility could only produce 100 drones per month, contrary to earlier claims of thousands [7]. Group 2: Financial Performance and Stock Impact - Following the disclosure of the actual production capacity, Red Cat's stock price fell by $0.10 per share, or 8.93%, closing at $1.02 on July 28, 2023 [8]. - In the first quarter of fiscal year 2025, Red Cat reported losses per share of $0.17, missing estimates by $0.09, and revenue of $2.8 million, missing estimates by $1.07 million [9]. - After a report from Kerrisdale Capital 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, or 21.54%, closing at $8.56 on January 17, 2025 [12][13]. Group 3: Contract and Future Prospects - Red Cat announced on November 19, 2024, that it had won the SRR Contract, with expectations of generating $50 million to $79.5 million in revenue during fiscal year 2025 [11]. - The company has indicated that achieving higher production capacity at the Salt Lake City Facility will require additional capital investments and manufacturing efficiencies [7].