Shareholders who lost money on Red Cat Holdings, Inc. (NASDAQ: RCAT) Should Contact Wolf Haldenstein

NEW YORK, May 28, 2025 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been filed on behalf of all persons or entities who purchased the securities of Red Cat Holdings, Inc. (Red Cat or the Company) (NASDAQ: RCAT).

PLEASE CLICK HERE TO JOIN THE CASE AND SUBMIT CONTACT INFORMATION

Class Action Details

• Jurisdiction: United States District Court for the District of New Jersey.
• Class Period: March 18, 2022 – January 15, 2025.
• Lead Plaintiff Deadline: July 22, 2025
• Allegations:
  • Misrepresentations or omissions regarding:
  • The production capacity and development progress of the Salt Lake City Facility.
  • The overall value of the SRR Contract with the U.S. Department of Defense.
  • Public statements that were allegedly materially false or misleading.

Timeline of Key Events

• July 27, 2023:
  • Red Cat revealed the Salt Lake City Facility could only produce 100 drones/month.
  • Facility still under development; full capacity (1,000 drones/month) contingent on future investments.
  • Stock fell 8.93% to $1.02 on July 28, 2023.
• September 23, 2024:
  • Q1 FY2025 earnings: Loss of $0.17/share (missed estimates by $0.09); Revenue: $2.8M (missed by $1.07M).
  • Disclosed manufacturing pause for facility retooling impacted Teal 2 sales.
  • Stock fell 25.32% to $2.36 on September 25, 2024.
• November 19, 2024:
  • Announced winning the SRR Contract.
  • Claimed potential revenues up to $50–$79.5 million for FY2025.
• January 16, 2025:
  • Kerrisdale Capital released a report:
    • Estimated SRR Contract value at $20–$25 million.
    • Alleged production capacity overstatements and raised concerns about insider activities.
    • Report challenges Red Cat‘s portrayal of a lucrative $400 million, five-year sole-source contract with the US Army for Short Range Reconnaissance (SRR) drone
  • Stock fell 21.54% to $8.56 on January 17, 2025.
    

Impact

• The lawsuit claims significant financial harm to investors due to:
  • Alleged false or misleading statements.
  • Stock price declines linked to corrective disclosures.
    

Why Wolf Haldenstein Adler Freeman & Herz LLP?:

This illustrious firm, founded in 1888, is steadfast in their pursuit of justice for investors who have suffered financial harm due to these misrepresented statements. The law firm brings to the fore over 125 years of legal expertise in securities litigation and has a proven track record of protecting the rights of investors.

We encourage all investors who have been affected or have information that will assist in our investigation, to contact Wolf Haldenstein Adler Freeman & Herz LLP.

Contact:

• Phone: (800) 575-0735 or (212) 545-4774
• Email: classmember@whafh.com
• Contact Person: Gregory Stone, Director of Case and Financial Analysis
  

Firm Website: Wolf Haldenstein Adler Freeman & Herz LLP

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.