Red Cat Holdings Lawsuit: Lead Plaintiff Deadline July 22, 2025.

Red Cat Holdings, Inc. is facing a class-action lawsuit alleging violations of the Securities Exchange Act of 1934. The lawsuit claims that the company and its executives engaged in misleading statements and omissions between March 18, 2022 and January 15, 2025. Investors who suffered substantial losses can seek appointment as lead plaintiff by July 22, 2025.

Red Cat Holdings, Inc. (NASDAQ: RCAT) is under fire from a class-action lawsuit filed by Pomerantz LLP and the Schall Law Firm, alleging violations of the Securities Exchange Act of 1934. The suit claims that the company and its executives made false and misleading statements and omissions between March 18, 2022, and January 15, 2025, resulting in substantial losses for investors.

The complaints allege that Red Cat overstated the production capacity of its Salt Lake City facility and the value of its Short Range Reconnaissance Program of Record Tranche 2 contract (SRR Contract). These misrepresentations, according to the lawsuits, were materially false and misleading, causing investors to suffer damages.

Key events leading to the lawsuit include:

1. March 2022: Red Cat announced its selection to compete in Tranche 2 of the U.S. Army's SRR Program, with the contract potentially worth hundreds of millions to over a billion dollars.
2. July 2023: During an investor call, Red Cat revealed that the Salt Lake City facility could only produce 100 drones per month, contrary to earlier claims of thousands of drones per month.
3. September 2024: Red Cat reported financial losses and a pause in manufacturing due to retooling efforts, leading to a significant drop in stock price.
4. November 2024: Red Cat announced it had won the SRR Contract, asserting it could realize up to $50 million to $79.5 million in revenue during fiscal year 2025.
5. January 2025: Kerrisdale Capital published a report alleging that the SRR Contract was only worth approximately $20 million to $25 million, further damaging investor confidence.

Investors who purchased Red Cat securities during the class period are encouraged to contact the law firms to discuss their rights. The deadline for potential lead plaintiffs to be appointed is July 22, 2025.

References:

1. [Pomerantz LLP Press Release](https://www.morningstar.com/news/globe-newswire/9492432/pomerantz-law-firm-announces-the-filing-of-a-class-action-against-red-cat-holdings-inc-and-certain-officers-rcat)
2. [Schall Law Firm Press Release](https://www.morningstar.com/news/pr-newswire/20250714la29228/rcat-investors-have-opportunity-to-lead-red-cat-holdings-inc-securities-fraud-lawsuit-filed-by-the-schall-law-firm)