RCAT Investor ALERT: Red Cat Holdings, Inc. Sued For Securities Fraud; Investors Should Contact Block & Leviton to Potentially Recover Losses

/EIN News/ -- BOSTON, May 27, 2025 (GLOBE NEWSWIRE) -- Block & Leviton announces that a securities fraud lawsuit has been filed against Red Cat Holdings, Inc. (Nasdaq: RCAT) and certain of its executives. Investors who have lost money in their Red Cat Holdings investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/rcat.

What is this all about?

The complaint alleges that, throughout the Class Period, Red Cat Holdings, Inc. made materially false and misleading statements about its business, particularly overstating the production capacity of its Salt Lake City Facility and the value of its SRR Contract. On July 27, 2023, the company disclosed that the facility could only produce 100 drones per month and was still under construction, leading to an 8.93% stock price drop. On September 23, 2024, Red Cat reported disappointing Q1 2025 results, with a $0.17 per share loss and $2.8 million in revenue, missing estimates, and admitted to a manufacturing pause, causing a 25.32% stock price decline over two days. On November 19, 2024, despite announcing the SRR Contract win and projecting $50 million to $79.5 million in revenue for 2025, a January 16, 2025, Kerrisdale Capital report claimed the contract was worth only $20 million to $25 million and highlighted ongoing misrepresentations about the facility’s capacity. This report triggered a 21.54% stock price drop over two trading sessions, closing at $8.56 per share on January 17, 2025.

‍ Who is eligible?

Anyone who purchased Red Cat Holdings, Inc. common stock between March 18, 2022, and January 15, 2025, and has seen their shares fall may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more.

What should you do next?

The deadline to seek appointment as lead plaintiff is July 22, 2025. A class has not yet been certified, and until a certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member. If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at shareholders@blockleviton.com, or by phone at (888) 256-2510.

Whistleblower?

If you have non-public information about Red Cat Holdings, Inc., you should consider assisting in our investigation or working with our attorneys to file a report with the Securities Exchange Commission under their whistleblower program. Whistleblowers who provide original information to the SEC may receive rewards of up to 30% of any successful recovery. For more information, contact Block & Leviton at whistleblowers@blockleviton.com or by phone at (888) 256-2510.

Why should you contact Block & Leviton?

Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website, www.blockleviton.com, call (888) 256-2510 or email shareholders@blockleviton.com with any questions.

This notice may constitute attorney advertising.

CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (888) 256-2510
Email: shareholders@blockleviton.com