Deadline Approaching for Investors of Red Cat Holdings, Inc. (RCAT) - Contact Kaplan Fox Before July 22, 2025
NEW YORK, NY - June 4, 2025 ( NEWMEDIAWIRE ) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Red Cat Holdings, Inc. ('Red Cat' or the 'Company') (NASDAQ: RCAT) on behalf of investors that purchased or otherwise acquired Red Cat securities between March 18, 2022 and January 15, 2025, both dates inclusive (the 'Class Period').
CLICK HERE TO JOIN THE CASE
If you are an investor in Red Cat and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (212) 329-8571.
DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than July 22, 2025 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.
According to the complaint, 'Red Cat manufactures drones through its subsidiary Teal Drones, Inc. ('Teal') at a facility located in Salt Lake City, Utah ('Salt Lake Facility'). Throughout 2022, Defendants touted their development of the Salt Lake Facility's capacity to produce 'thousands of drones per month' or 'tens of thousands of drones' per year.'
'In March 2022, Red Cat announced that Teal had been selected by the U.S. Department of Defense's [] Defense Innovation Unit and the U.S. Army to compete in Tranche 2[] of the U.S. Army's Short Range Reconnaissance Program of Record ('SRR Program') . . . Defendants suggested or otherwise asserted that the SRR Program's Tranche 2 contract ('SRR Contract'') was worth potentially hundreds of millions to over a billion dollars in contract revenues.'
'On November 19, 2024, Red Cat issued a press release announcing that it had won the SRR Contract. On a subsequent conference call . . . Defendants continued to assert that the SRR Contract was worth potentially hundreds of millions of dollars, while expressing their confidence that Red Cat could realize up to $50 million to $79.5 million in revenue from the SRR Contract during its fiscal year 2025 alone.'
'Then, on January 16, 2025, Kerrisdale Capital ('Kerrisdale') published a report alleging, inter alia , that Defendants had overstated the value of the SRR Contract, which Kerrisdale found was only worth approximately $20 million to $25 million based on U.S. Army budget documents.'
On this news, Red Cat's stock 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.
The complaint alleges, among other things, that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that (i) the Salt Lake City Facility's production capacity, and Defendants' progress in developing the same, was overstated; (ii) the overall value of the SRR Contract was overstated; and (iii) as a result, Defendants' public statements were materially false and misleading at all relevant times.
WHY CONTACT KAPLAN FOX - Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com .
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(212) 329-8571
[email protected]
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
[email protected]
Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.
https://www.kaplanfox.com/case/red-cat-holdings-inc/
View the original release on www.newmediawire.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
15 minutes ago
- Wall Street Journal
Heard on the Street Recap: Wild Quarter
Traders work on the floor of the New York Stock Exchange on Monday. (Timothy A. Clary/AFP/Getty Images)
Yahoo
16 minutes ago
- Yahoo
Smucker's Makes Final Decision on Controversial Ingredient
We're moving away from synthetic dyes in food. J.M Smucker Company announced that they will be removing FD&C colors from "all consumer food products by the end of calendar year 2027." The FD&C Act was enacted by the Food and Drug Administration in 1938 by President Franklin D. Roosevelt. It's designed to remove unnecessary color additives in food by implementing safety guidelines (such as understanding which types of foods synthetic colors can be used in, setting maximum amounts, and determining how it should be declared on the food label). Smucker's said that this ingredient change will impact its "sugar-free fruit spreads and ice cream toppings, as well as certain products from its Hostess brand portfolio." Twinkies and Snoballs snack cakes, for example, are made with Red 40. The company added that most of their consumer foods are already free of FD&C colors, including the majority of the products available in kindergarten-to-12th grade schools."Throughout our 128-year history, we have successfully evolved our portfolio and product offerings based on shifts in consumer preferences," CEO Mark Smucker said in the statement. "Our commitment to remove FD&C colors from our sugar-free fruit spreads, ice cream toppings, and sweet baked goods products represents the latest example of our desire to evolve and our ability to continue to innovate to deliver on the expectations of our consumers." RELATED: J.M. Smucker is joined by Nestlé USA and Kraft Heinz in the effort to remove artificial dyes from their United States products. Kraft Heinz put out a press release on June 17, stating that they will be abiding by the FD&C colors "effective immediately." The company has already been making steps towards this initiative after removing artificial colors, preservatives, and flavors from Kraft Mac & Cheese in 2016. In the same vein, Nestlé announced last week that they will remove synthetic colors in its food and beverage portfolio by Makes Final Decision on Controversial Ingredient first appeared on Men's Journal on Jun 30, 2025
Yahoo
19 minutes ago
- Yahoo
Sister of U. of Idaho Murder Victim Kaylee Goncalves Slams Plea Deal with Suspect Bryan Kohberger: 'The System Has Failed'
Bryan Koberger is accused of killing University of Idaho students Madison Mogen, Kaylee Goncalves, Xana Kernodle and Ethan Chapin in November 2022 The former Ph.D student has reportedly accepted a plea deal Goncalves' 18-year-old sister, Aubrie Goncalves, spoke out about the news in a statementKaylee Goncalves' 18-year-old sister, Aubrie Goncalves, is speaking out after her suspected killer, Bryan Kohberger, has reportedly accepted a plea deal. In December 2022, Kohberger was charged with four counts of first-degree murder and one count of felony burglary in connection with the November 2022 murders of four University of Idaho students: Madison Mogen, 21, Kaylee Goncalves, 21, Xana Kernodle, 20, and Ethan Chapin, 20. Following his indictment by a grand jury in May 2023, a judge reportedly entered not-guilty pleas on his behalf after he exercised his right to remain silent during his arraignment. After waiving his right to a speedy trial in August 2023, the case was delayed indefinitely, pushing his trial to August 2025, per ABC News. According to a letter sent to victims' family members discussing a new plea agreement, cited by the outlet, however, Kohberger is expected to enter a guilty plea on all charges. This means he would be sentenced to four consecutive life sentences plus up to 10 years on the burglary charge. The former Ph.D student, who could have faced the death penalty if convicted, will also waive his appeal rights, per ABC News. Following the news, Goncalves' 18-year-old sister, Aubrie, penned a statement on the Goncalves Family Page on Facebook, stating that she would not stay silent, as what she and the families of the deceased have endured is "beyond comprehension." "From the constant delays to the relocation of proceedings—making it harder for loved ones to attend—the justice system has placed heavy burdens on those already carrying unimaginable grief. Through it all, we have tried to hold on to hope," Aubrie wrote. "We've believed in the process. We've had faith in the system. But at this point, it is impossible not to acknowledge the truth: the system has failed these four innocent victims and their families," she continued. Aubrie wrote that Mogen, Goncalves, Kernodle, and Chapin "deserve to be remembered for who they were in life, not only for the tragedy of their deaths." "But before that can truly happen, they deserve justice. Nothing less. The introduction of this plea deal, just weeks before the scheduled trial, is both shocking and cruel," wrote Aubrie. She said that if a plea deal would have been introduced earlier in the case the family could have had "time to process, discuss, and potentially come to terms with the idea of a life sentence—however difficult that may be. We could have had the time to understand it, to prepare for it emotionally, and perhaps even to find some degree of peace." "But now, with mere weeks left, we are being asked to absorb and respond to life-altering decisions with no room to breathe," wrote Aubrie. The teenager expressed that she feels that their loved ones have been "silenced forever," while Kohberger will "still get to speak, form relationships, and engage with the world," in prison. "That reality stings more deeply when it feels like the system is protecting his future more than honoring the victims' pasts," she said, noting that "this last-minute plea deal feels less like an act of justice and more like an afterthought." Want to keep up with the latest crime coverage? Sign up for for breaking crime news, ongoing trial coverage and details of intriguing unsolved cases. "We are not asking for vengeance. We are asking for accountability. We are asking for dignity for our loved ones. And we are asking—pleading—for a justice system that truly lives up to its name," she said. The Goncalves family also published a follow-up post on Facebook, in which they said they did "talk to the prosecution on Friday about the POSSIBILITY of a plea deal and it was a HARD NO from our family." They said they met with prosecutors again on Monday to "reiterate our views on pushing for the death penalty." However, they continued, "Unfortunately all of our efforts did not matter. We DID OUR BEST! We fought harder then anyone could EVER imagine." Read the original article on People
