#Faruqi & Faruqi #Red Cat Holdings #SRR Contract

Investor Alert: Faruqi & Faruqi Looks into Red Cat Holdings

Faruqi & Faruqi, LLP, a well-known national securities law firm, has initiated an investigation into possible claims against Red Cat Holdings, Inc. (NASDAQ: RCAT) on behalf of investors. Those involved with Red Cat and who have experienced losses exceeding $75,000 between March 18, 2022, and January 15, 2025, are being urged to connect with the firm to discuss their legal options. The investigation stems from a class action lawsuit deadline set for July 21, 2025, aimed at addressing the alleged misconduct within Red Cat.

Background on the Allegations

The complaints against Red Cat Holdings suggest that the company, along with its executives, may have contravened federal securities laws by making misleading statements concerning their production capabilities and the actual worth of key contracts. A core issue revolves around the Salt Lake City Facility and its production capacity, which the defendants allegedly exaggerated.

In March 2022, Red Cat announced that its subsidiary, Teal, was selected by the U.S. Department of Defense to participate in the Short Range Reconnaissance Program of Record (SRR Program) due to its innovative drone technology. Initially, this contract was projected to deliver significant revenue, reportedly worth hundreds of millions to over a billion dollars. The company stated that their Salt Lake City facility was