PHILADELPHIA, June 13, 2024 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that it is investigating Redwire Corporation (NYSE: RDW) (“Redwire”), formerly known as SPAC entity Genesis Park Acquisition Corp., on behalf of the company’s long-term investors.
Recently a securities fraud complaint was filed against Redwire on behalf of certain investors who purchased shares of the company’s stock between March 25, 2021 and March 31, 2022. According to the complaint, during that time period Redwire and certain of the company’s senior executive officers “omitted to disclose material deficiencies in Redwire’s internal controls over its financial disclosures – a fact Redwire’s senior management knew, but desperately tried to conceal, including through touting their “dedicate[ion] to conducting business with efficiency, fairness and integrity and encourage[ing] behavior that will maintain the public’s confidence and trust in [Redwire’s] operations.”
The complaint further details how, through a series of partial disclosures beginning in November 2021, investors slowly learned the truth about the company’s prior misrepresentations and suffered economic damages as a result therefrom. For example, on November 10, 2021, just over two months after going public, Redwire announced that it would postpone releasing its quarterly earnings results and that it was investigating internal allegations of accounting issues. Following this news, shares of Redwire’s stock fell $1.92 per share, or over 16% in value, to close on November 10, 2021 at $9.99 per share. Five days later, on November 15, 2021, Redwire gave an update saying that it could not timely file its quarterly report, sending the stock down another 8% in value.
Subsequently, on March 31, 2022, Redwire released its internal audit results, which indicated a host of internal procedural and control failures, including “an additional material weakness” beyond the company’s “previously identified internal control deficiencies.” Following this additional news, shares of Redwire’s stock fell an additional $2.43 per share, or over 28% in value, to close on April 1, 2022 at $6.05 per share, on heavy trading volume.
The investigation seeks to determine whether the members of Redwire’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct and disclosures.
Current Redwire shareholders who purchased or acquired shares of RDW stock prior to March 31, 2022 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750 for additional information about this investigation and their legal rights and options, or by clicking on the following link (or if necessary, by copying and pasting the link into your browser):
https://kaskelalaw.com/case/redwire-corporation/
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
(skaskela@kaskelalaw.com)
Adrienne Bell, Esq.
(abell@kaskelalaw.com)
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750
www.kaskelalaw.com
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