Red Cat Executives Allegedly Misrepresented Drone Making Ability

Red Cat Holdings Inc. executives and directors violated a securities law and engaged in other misconduct by misrepresenting the company’s ability to produce drones under a US Army contract, a new lawsuit says.

They also made materially false statements about the company’s financial status, causing damages to Red Cat in excess of hundreds of millions of dollars, shareholder Vanessa Henderson told the US District Court for the District of Nevada in a Monday shareholder derivative complaint on behalf of the company.

The company’s stock dropped by almost 22% over two trading sessions in January 2025 after a Kerrisdale report revealed ...