SAN DIEGO, June 4, 2025 /PRNewswire/ --
The law firm of 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 former executives with violations of the
Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Red Cat class action lawsuit,
please provide your information here:
Red Cat Class Action Lead Plaintiff Submission
You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling
800/449-4900 or via e-mail at
[email protected].
CASE ALLEGATIONS:
Red Cat, together with its subsidiaries, provides products and solutions to the drone industry. Red Cat's
products include, among others, the "Teal 2" drone, a small, unmanned aircraft system designed to purportedly
"Dominate the Night" during nighttime military operations.
The Red Cat class action lawsuit alleges that defendants throughout the Class Period made false and/or
misleading statements and/or failed to disclose that: (i) Red Cat's Salt Lake City facility's production
capacity, and defendants' progress in developing the same, was overstated; and (ii) the overall value of
Red Cat's Short Range Reconnaissance Program of Record Tranche 2 contract (the "SRR Contract") was
overstated.
The Red Cat class action lawsuit further alleges that on July 27, 2023, Red Cat revealed that its Salt Lake
City facility could only currently produce 100 drones per month, the facility was still being built, refined,
and expanded, and that construction of the facility was only "substantially completed" and potentially could
reach a production capacity of 1,000 drones per month over the next 2 to 3 years, but only with additional
capital investments and manufacturing efficiencies realized. On this news, the price of Red Cat stock fell
nearly 9%, according to the complaint.
Then, on September 23, 2024, the Red Cat class action lawsuit further alleges that Red Cat announced its
financial results for the first quarter of fiscal year 2025, reporting losses per share of $0.17, missing
consensus estimates by $0.09, and revenue of $2.8 million, missing consensus estimates by $1.07 million.
According to the complaint, Red Cat further disclosed that Red Cat had spent "the past four months . . .
retooling [the Salt Lake City facility] and preparing for high volume production," while admitting that a
"pause in manufacturing of Teal 2 and building Army prototypes impacted Teal 2 sales" because, among
other things, Red Cat "couldn't produce and sell Teal 2 units while retooling [its] factory." The Red Cat class
action lawsuit alleges that on this news, the price of Red Cat stock fell more than 25%.
Finally, the Red Cat class action lawsuit further alleges that on January 16, 2025, Kerrisdale Capital published
a report alleging that "[t]he SRR contract that Red Cat won in November and preemptively announced without
the Army's permission is much smaller and less favorable than management as intimated," and that "[i]t's highly
implausible that a mass-production facility for manufacturing drones has been built at any point in the last
two years for less than $1 million." On this news, the price of Red Cat stock fell more than 21% over two
trading sessions, according to the complaint.
THE LEAD PLAINTIFF PROCESS:
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Red Cat
securities during the Class Period to seek appointment as lead plaintiff in the Red Cat class action lawsuit.
A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative
class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class
members in directing the Red Cat class action lawsuit. The lead plaintiff can select a law firm of its choice
to litigate the Red Cat class action lawsuit. An investor's ability to share in any potential future recovery is
not dependent upon serving as lead plaintiff of the Red Cat class action lawsuit.
ABOUT ROBBINS GELLER:
Robbins Geller Rudman & Dowd LLP is one of the world's leading law firms representing investors in securities
fraud and shareholder litigation. Our Firm has been ranked #1 in the ISS Securities Class Action Services
rankings for four out of the last five years for securing the most monetary relief for investors. In 2024, we
recovered over $2.5 billion for investors in securities-related class action cases – more than the next five law
firms combined, according to ISS. With 200 lawyers in 10 offices, Robbins Geller is one of the largest
plaintiffs' firms in the world, and the Firm's attorneys have obtained many of the largest securities class
action recoveries in history, including the largest ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please
visit the following page for more information:
Robbins Geller Services
Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices.
Contact:
Robbins Geller Rudman & Dowd LLP
J.C. Sanchez, Jennifer N. Caringal
655 W. Broadway, Suite 1900, San Diego, CA 92101
800-449-4900
[email protected]
SOURCE Robbins Geller Rudman & Dowd LLP
