Archived Investigations
Red Cat Holdings, Inc. (NasdaqCM: RCAT)
Red Cat and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On January 16, 2025, Kerrisdale Capital reported that the Company had overstated the value of its SRR Contract, which was only worth approximately $20 million to $25 million based on U.S. Army budget documents, and that the Company had been misleading investors about the production capacity of its Salt Lake City Facility for years, while also raising concerns about the timing of executive departures and insider transactions that took place shortly after Red Cat announced it had won the SRR Contract.
On this news, the price of Red Cat’s shares 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 case is Olsen v. Red Cat Holdings, Inc., No. 25-cv-05427.