Core Viewpoint - The 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 and Financial Impact - The lawsuit alleges that Red Cat 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 the announcement [3][4]. - Following the revelation of production limitations on July 27, 2023, Red Cat's stock price fell nearly 9% [4]. - On September 23, 2024, Red Cat reported a loss per share of $0.17, missing consensus 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, by Kerrisdale Capital alleged that the SRR contract was less favorable than previously indicated, resulting in a stock price decline of 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 represent the interests of all class members [7].

SAN DIEGO, June 05, 2025 (GLOBE NEWSWIRE) -- Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Red Cat Holdings, Inc. (NASDAQ: RCAT) securities between March 18, 2022 and January 15, 2025, inclusive (the “Class Period”), have until July 22, 2025 to seek appointment as lead plaintiff of the Red Cat class action lawsuit. Captioned Olsen v. Red Cat Holdings, Inc., No. 25-cv-05427 (D.N.J.), the Red Cat class action lawsuit charges Red Cat as well as certain of Red Cat’s top current and ...