BENSALEM, PA – (COMMERCIAL THREAD) – The law firm of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Rekor Systems, Inc. f / k / a Novume Solutions, Inc. (âRekorâ or the âCompanyâ) (NASDAQ: REKR) securities between April 12, 2019 and 25 May 2021, inclusive (the âClass Periodâ). Rekor’s investors have up to August 30, 2021 file an application as the principal applicant.
Investors experiencing losses on their Rekor investments are encouraged to contact the law firms of Howard G. Smith to discuss their legal rights in this class action lawsuit at 888-638-4847 or by email at [email protected]
On May 10, 2021, a Texas bill authorizing the establishment of uninsured vehicle diversion (“UVED”) was left pending in state commission, leading to d ‘significant market speculation that the bill was dead. The same day, during a conference call, Rekor indicated that the Company may not enter into a UVED deal with Texas.
Following this news, the company’s stock price fell $ 5.20, or 27.5%, to close at $ 13.71 per share on May 10, 2021, hurting investors. The stock price continued to decline over the next trading session by $ 2.45, or nearly 18%, to close at $ 11.26 per share on May 11, 2021.
Then, on May 26, 2021, Western Edge released a report titled “Rekor Systems: Lackluster Growth Runway and Exaggerated Insurance Scheme Raise Substantial Downside Risk,” alleging, among other things, that the “results achieved by the company suggest that revenue forecasts management potentials could be overestimated. up to 80%. The report also noted that Rekor’s predecessor in the Oklahoma UVED partnership had left him because “the program is not economically feasible.”
On the same day, Mariner Research Group released a report titled âREKR – Government Documents Do Not Support Investor Expectationsâ. According to the report, âgovernment documentation. . . shows that REKR’s earning opportunities are probably a fraction of what investors expect. For example, “Oklahoma government budgets imply that REKR’s much-vaunted UVED program is a revenue opportunity of less than $ 2 million, nearly 96% less than the $ 40 million in suggested revenue. by the CEO of Rekor. ”
On this news, Rekor’s stock price fell $ 0.44 per share, or 3.93%, to close at $ 10.77 per share on May 26, 2021.
The complaint filed alleges that throughout the Claim Period, the Defendants made materially false and / or misleading statements, as well as failed to disclose material adverse facts regarding the business, operations and prospects of the Company. . Specifically, the Defendants failed to disclose to investors that: (1) Rekor’s Automatic License Plate Recognition (âALPRâ) technology and UVED-related businesses are outclassed by global competitors with market share dominant established; (2) states were unlikely to pass legislation authorizing agreements similar to Rekor’s Oklahoma UVED Partnership due, among other things, to state and local privacy laws and related public concerns; (3) Rekor’s UVED partnership was not as profitable as the Defendants had led investors to believe due to known barriers to enrollment rates and costs associated with the partnership; (4) as a result, Rekor overestimated its potential revenues, profitability and overall business prospects related to ALPR and UVED; and (5) accordingly, the Defendants’ statements regarding its business, operations and prospects were materially false and misleading and / or lacked reasonable basis at all relevant times.
If you have purchased Rekor securities, have any information or would like to learn more about any such claims, or have any questions regarding this announcement or your rights or interests in any such matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pa. 19020, by phone at (215) 638-4847, toll free at (888) 638-4847, or by email at howardsmith @ howardsmithlaw. com, or visit our website at www.howardsmithlaw.com.
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