Faruqi & Faruqi Reminds Red Cat Holdings (RCAT) Investors of Class Action Lawsuit.
Faruqi & Faruqi, LLP, a national securities law firm, is representing investors who lost over $50,000 in Red Cat Holdings, Inc. (NASDAQ: RCAT).
Partner James (Josh) Wilson is available to discuss legal options.
A class action lawsuit has been filed against Red Cat Holdings, alleging that the company and its executives made misleading statements about key aspects of the business.
The complaint claims Red Cat overstated the production capacity of its Salt Lake City facility, exaggerated the value of its SRR Contract, and misrepresented the company’s operations and outlook.
Back in early 2022, Red Cat announced it was participating in the U.S. Army’s Short Range Reconnaissance (SRR) Program, hinting at significant revenue potential.
By March 2023, Red Cat claimed its Salt Lake City facility was fully operational and could produce thousands of drones each month.
In July 2023, the company admitted that the factory was not finished and could only produce about 100 drones per month. This revelation led to a nearly 9% drop in stock price.
In September 2024, Red Cat reported financial results that fell short of expectations and acknowledged it had been retooling the facility for months. This news pushed the stock down over 25%.
Then in November 2024, Red Cat announced it had won the SRR Contract and projected high revenues. But in January 2025, Kerrisdale Capital released a report revealing that the contract’s value was likely much lower than claimed.
The report also raised questions about insider transactions and executive departures. Following this news, Red Cat’s stock dropped over 21%.
If you invested in Red Cat between March 18, 2022, and January 15, 2025, and lost money, you may be able to join the class action lawsuit or even serve as the lead plaintiff. Your right to compensation won’t be affected whether you choose to lead or participate. The deadline to act is July 21, 2025.
If you’d like to discuss your options, contact Josh Wilson at Faruqi & Faruqi:
877-247-4292 or 212-983-9330 (Ext. 1310)
If you have information about Red Cat’s conduct, whether you’re a whistleblower, a former employee, or an investor, Faruqi & Faruqi encourages you to speak up.
Red Cat Holdings, Inc. is a drone technology company delivering hardware and software solutions for military, government, and commercial use. Through subsidiaries Teal Drones and FlightWave Aerospace, Red Cat offers a Family of Systems including Black Widow™, TRICHON™, and FANG™. Headquartered in San Juan, Puerto Rico, Red Cat is advancing drone innovation and delivering cutting-edge solutions for defense and commercial applications.
Faruqi & Faruqi, LLP is a national law firm specializing in complex civil litigation, including securities, antitrust, consumer, shareholder derivative, and employment cases. Founded in 1995 by Nadeem and Lubna Faruqi, the firm has grown from a small New York office to locations across the U.S. Faruqi & Faruqi has served as lead counsel in numerous high-profile cases, recovering significant sums for investors, consumers, and employees. Committed to integrity, respect, and client service, the firm employs a skilled team of attorneys and legal professionals dedicated to upholding the highest standards.
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