Kaskela Law LLC Announces Shareholder Investigation of Redwire Corporation (NYSE: RDW) and Encourages Long-Time RDW Shareholders to Contact the Firm

Recently, a securities fraud lawsuit was filed against Redwire on behalf of investors who purchased shares of the company between March 25, 2021 and March 31, 2022. According to the lawsuit, during that period, Redwire and certain of the company’s officers “failed to disclose material deficiencies in Redwire’s internal controls over its financial reporting – a fact that Redwire’s senior management knew but desperately tried to cover up, including by touting their “dedicated[ion] for efficient, fair and honest business management and for the promotion[ing] Behavior that undermines public confidence in [Redwire’s] operations.”

The complaint further describes how, through a series of partial disclosures beginning in November 2021, investors slowly learned the truth about the company’s past misrepresentations and suffered economic harm as a result. For example, on November 10, 2021, just over two months after its IPO, Redwire announced it would delay the release of quarterly results and investigate internal allegations of accounting problems. Following this news, Redwire shares fell $1.92 per share, or over 16% in value, to close at $9.99 per share on November 10, 2021.Five days later, on November 15, 2021, Redwire issued an update saying it was unable to file its quarterly report on time, causing its stock to fall another 8%.

Subsequently, on March 31, 2022, Redwire released the results of its internal audit, which highlighted a number of internal procedural and control deficiencies, including “an additional material weakness” beyond the company’s “previously identified internal control deficiencies.” Following this additional news, Redwire stock value fell another $2.43 per share, or over 28%, to close at $6.05 per share on April 1, 2022, amid heavy trading volume.

The purpose of the investigation is to determine whether members of Redwire’s board of directors violated the securities laws and/or their fiduciary duties in connection with the alleged misconduct and disclosures described above.

Current Redwire shareholders who have purchased or acquired shares of RDW before 31 March 2022 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750 for further information regarding this investigation and their legal rights and options. Alternatively, investors may submit their information to the firm by clicking on the following link (or by copying and pasting the link into your browser):

Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance and merger and acquisition litigation on a contingency basis. For more information about Kaskela Law LLC, visit www.kaskelalaw.com.

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Redwire stock at the time of news release with an increase of +0.80 % up to 6.31USD on the NYSE stock exchange (September 19, 2024, 2:04 a.m.).