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Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Rekor To Contact Him Directly To Discuss Their Options
New York, New York--(Newsfile Corp. - August 22, 2021) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Rekor Systems, Inc. ("Rekor" or the "Company") (NASDAQ: REKR) and reminds investors of the August 30, 2021 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $50,000 investing in Rekor stock or options between April 12, 2019 and May 25, 2021 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/REKR.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Delaware, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Rekor's ALPR technology and UVED-related business is outclassed by global competitors with an established, dominant market share; (2) it was unlikely that states would pass legislation authorizing deals similar to Rekor's Oklahoma UVED partnership because of, inter alia, state and local privacy laws and related public concerns; (3) Rekor's UVED partnership was not as profitable as Defendants had led investors to believe because of known impediments to enrollment rates and costs associated with the partnership; (4) accordingly, Rekor had overstated its potential revenues, profitability, and overall ALPR- and UVED-related business prospects; and (5) as a result, the Company's public statements were materially false and misleading at all relevant times.
Specifically, on May 10, 2021, a bill authorizing the establishment of a state UVED program was excluded from the Texas Legislature's Daily House Calendar and left pending in a state committee. Because May 10, 2021 was the deadline for the Texas UVED bill to move from the committee, news sources reported significant market speculation that the bill was dead. Further, on a post-market earnings call that same day to discuss Rekor's first quarter 2021 financial results, Defendant Berman also indicated that Rekor may not secure a UVED agreement with Texas.
On news of the Texas UVED bill's exclusion from the state's Daily House Calendar, Rekor's stock price fell $5.20 per share, or 27.5%, to close at $13.71 per share on May 10, 2021. Then, following Defendants' post-market conference call with investors the same day, Rekor's stock price fell an additional $2.45 per share, or 17.87%, to close at $11.26 per share on May 11, 2021-representing a two-day total decline of $7.65 per share, or 40.45%. Despite this decline in the Company's stock price, Rekor securities continued to trade at artificially inflated prices throughout the remainder of the Class Period because of Defendants' continued misrepresentations or omissions with respect to Rekor's ALPR business prospects.
Then, on May 26, 2021, private investor Western Edge published a report addressing Rekor, entitled "Rekor Systems: Lackluster Growth Runway And Exaggerated Insurance Scheme Raise Substantial Downside Risk." The Western Edge report alleged, among other things, that global competition was "miles ahead" of Rekor in ALPR development and market establishment; that "realized results suggest management's potential revenue guidance could be overstated by up to 80%"; and that investors were at risk of facing a "massive downside if [the Company's] growth doesn't show up."
Also on May 26, 2021, Mariner published a report addressing Rekor, entitled "REKR - Government documents do not support investor expectations." The Mariner report largely comported with, and supplemented, the Western Edge report, finding that, among other things, "Oklahoma government budgets imply that [Rekor]'s much vaunted UVED program is a sub $2MM revenue opportunity - almost 96% less than the >$40MM in revenue intimated by Rekor's CEO" and that Rekor's "largest contributor to 2020 revenue will fall 95% in 2021 due to its non-recurring nature."
Following publication of the Western Edge and Mariner reports, Rekor's stock price fell $0.44 per share, or 3.93%, to close at $10.77 per share on May 26, 2021.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Rekor's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94010