Red Cat Holdings, Inc. Investors: Please contact the Portnoy Law Firm to recover your losses. July 22, 2025 Deadline to file Lead Plaintiff Motion

Investors can contact the law firm at no cost to learn more about recovering their losses

LOS ANGELES, June 30, 2025 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises Red Cat Holdings, Inc. (“Red Cat” or the “Company”) (NASDAQ: RCAT) investors of a class action representing investors that bought securities between March 18, 2022 and January 15, 2025, inclusive (the “Class Period”). Red Cat investors have until July 22, 2025 to file a lead plaintiff motion.

Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: [email protected], to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.

CASE ALLEGATIONS: Red Cat Holdings, Inc., through its subsidiaries, provides products and solutions for the drone industry. Its offerings include the “Teal 2” drone—a small, unmanned aircraft system designed for nighttime military operations and marketed to “Dominate the Night.”

According to the class action lawsuit, throughout the Class Period, Red Cat made false and/or misleading statements and/or failed to disclose material facts, including that:
(i) the production capacity of Red Cat’s Salt Lake City facility—and the company’s progress in developing that capacity—was significantly overstated; and
(ii) the overall value and potential of Red Cat’s Short Range Reconnaissance Program of Record Tranche 2 contract (the “SRR Contract”) was materially overstated.

The Complaint alleges that on July 27, 2023, Red Cat disclosed that its Salt Lake City facility was only capable of producing 100 drones per month, was still under construction and refinement, and would require further capital investment and efficiency improvements to potentially reach a capacity of 1,000 drones per month within 2 to 3 years. Following this disclosure, Red Cat’s stock price fell nearly 9%.

Then, on September 23, 2024, Red Cat reported its financial results for the first quarter of fiscal year 2025, missing expectations with a $0.17 per-share loss (versus a $0.09 expected loss) and $2.8 million in revenue (falling short by $1.07 million). The company revealed that it had spent the prior four months retooling the Salt Lake City facility for high-volume production, pausing manufacturing of the Teal 2 and delaying prototype builds for the U.S. Army. This pause, the company admitted, directly impacted Teal 2 sales. On this news, Red Cat’s stock declined over 25%, according to the Complaint.

Finally, on January 16, 2025, Kerrisdale Capital published a report asserting that the SRR contract Red Cat won in November—announced prematurely and without Army approval—was far smaller and less favorable than the company had led investors to believe. The report also questioned the feasibility of constructing a mass-production drone facility in under two years with an investment of less than $1 million. Over the following two trading sessions, Red Cat’s stock fell more than 21%, according to the Complaint.

Please visit our website to review more information and submit your transaction information.

The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.

Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
[email protected]
310-692-8883
www.portnoylaw.com

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