A lawsuit was filed on behalf of investors in Rekor Systems, Inc. (NASDAQ:REKR) shares over alleged securities laws violations. Deadline: August 30, 2021. NASDAQ:REKR investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 07/14/2021 -- An investor, who purchased shares of Rekor Systems, Inc. (NASDAQ: REKR), filed a lawsuit in the U.S. District Court for the District of Maryland over alleged violations of Federal Securities Laws by Rekor Systems, Inc. . f/k/a Novume Solutions, Inc in connection with certain allegedly false and misleading statements made between April 12, 2019 and May 25, 2021.
If you purchased a significant amount of shares of Rekor Systems, Inc. (NASDAQ: REKR) between April 12, 2019 and May 25, 2021, and / or if you purchased any NASDAQ: REKR shares prior to April 2019 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: August 30, 2021. NASDAQ: REKR investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Columbia, MD based Rekor Systems, Inc., through its subsidiaries, provides vehicle identification and management systems based on artificial intelligence in the United States, Canada, and internationally. One of the main drivers of Rekor Systems' business is its automatic license plate recognition ("ALPR") technology, which the Company has pitched to investors as a major market opportunity since at least 2018. For example, Rekor has consistently touted the purportedly lucrative prospects of its uninsured vehicle enforcement diversion ("UVED") partnership with the State of Oklahoma ("Oklahoma"), under which the Company receives compensation and commission fees in exchange for using its technology to scan vehicle license plates and compare them against a database to identify vehicles without auto-insurance. Fueled by management commentary, Rekor's stock price has ballooned under the market perception that the Oklahoma UVED partnership is not only lucrative but the first stepping-stone to capturing similar deals with other municipalities.
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 Systems, Inc's first quarter 2021 financial results, Rekor Systems' CEO also indicated that Rekor Systems, Inc may not secure a UVED agreement with Texas.
On May 26, 2021, Western Edge published a report entitled "Rekor Systems: Lackluster Growth Runway and Exaggerated Insurance Scheme Raise Substantial Downside Risk," alleging, among other things, that the Company's "realized results suggest management's potential revenue guidance could be overstated by up to 80%." The same day, Mariner Research Group published a report entitled "REKR - Government documents to not support investor expectations." According to the report, "government documentation . . . shows that REKR's revenue opportunities are likely a fraction of what investors expect." For example, "Oklahoma government budgets imply that REKR's much vaunted UVED program is a sub $2MM revenue opportunity--almost 96% less than the) $40MM in revenue intimated by Rekor's CEO."
Shares of Rekor Systems, Inc. (NASDAQ: REKR) declined from $25.38 per share on April 28, 2021 to as low as $9.88 per share on June 15, 2021.
According to the complaint the plaintiff alleges on behalf of purchasers of Rekor Systems, Inc. (NASDAQ: REKR) common shares between April 12, 2019 and May 25, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between April 12, 2019 and May 25, 2021, the Defendants made false and/or misleading statements and/or failed to disclose that Rekor's ALPR technology and UVED-related business is outclassed by global competitors with an established, dominant market share, that 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, that 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, that accordingly, Rekor had overstated its potential revenues, profitability, and overall ALPR- and UVED-related business prospects, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Rekor Systems, Inc. (NASDAQ: REKR) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.