1. Pomerantz LLP investigates potential securities fraud claims against Red Cat Holdings. 2. Kerrisdale Capital's report claims revenue overstatement on army drone contract. 3. Red Cat's stock dropped 21.63% following negative reports and executive departures.
The investigation and reports could undermine investor confidence, similar to past fraud cases.
The investigation into securities fraud could significantly impact Red Cat's market position.
Immediate reactions to the investigation may cause volatility in RCAT's stock price.
Pomerantz LLP is investigating claims on behalf of investors of Red Cat Holdings, Inc. ("Red Cat" or the "Company") (NASDAQ: RCAT). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Red Cat and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
Click here for information about joining the class action
On January 16, 2025, Kerrisdale Capital ("Kerrisdale") published a report alleging that Red Cat has overstated the revenue potential of its U.S. Army Short Range Reconnaissance ("SRR") drone contract and lacks the production capacity to deliver on its promises. The Kerrisdale report also raises concerns about the timing of executive departures and insider transactions that took place shortly after the announcement of the SRR contract.
On this news, Red Cat's stock price fell $2.36 per share, or 21.63%, over the following two trading sessions, to close at $8.55 per share on January 17, 2025.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT: Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
SOURCE: Pomerantz LLP