A class action lawsuit was filed against Red Cat Holdings, Inc. on behalf of investors who purchased the company's securities between March 18, 2022, and January 15, 2025. The lawsuit alleges violations of federal securities laws.
The complaint states that Red Cat issued false and misleading statements to the public, specifically exaggerating the production capabilities of its Salt Lake City facility. It also alleges that the company inflated the worth of its Short Range Reconnaissance Program of Record Tranche 2 agreement (the 'SRR Contract').
These allegations claim that the company's public disclosures were materially false and misleading throughout the class period. The lawsuit is significant as it represents a formal legal challenge to the company's past statements regarding its operational capacity and the value of a key government contract.
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