Core Viewpoint - A class action lawsuit has been filed against Red Cat Holdings, Inc. for allegedly making false statements regarding its 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]. 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 Performance - The lawsuit claims that Red Cat overstated the production capacity of its Salt Lake City facility, which was revealed to be only capable of producing 100 drones per month, with potential future capacity of 1,000 drones per month contingent on further investments [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, which led to a stock price drop of over 25% [5]. - 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% over two trading sessions [6].

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].

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, 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, 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 act on behalf of other class members [7].

Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, May 29, 2025 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Red Cat Holdings, Inc. (“Red Cat” or “the Company”) (NASDAQ: RCAT) investors that the firm has initiated an investigation into possible securities fraud and may file a class action on behalf of investors. Red Cat investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq. Investors are encouraged to contact attor ...