Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the District of New Jersey on behalf of shareholders of Red Cat Holdings, Inc. who purchased shares between March 18, 2022 and January 15, 2025.
Red Cat and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On January 16, 2025, Kerrisdale Capital reported that the Company had overstated the value of its SRR Contract, which was only worth approximately $20 million to $25 million based on U.S. Army budget documents, and that the Company had been misleading investors about the production capacity of its Salt Lake City Facility for years, while also raising concerns about the timing of executive departures and insider transactions that took place shortly after Red Cat announced it had won the SRR Contract.
On this news, the price of Red Cat’s shares fell $2.35 per share, or 21.54%, over the following two trading sessions, to close at $8.56 per share on January 17, 2025.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until July 22, 2025 to request that the court appoint them lead plaintiff.