There Were Material Weaknesses in Redwire Corporation’s (RDW) Internal Controls Over Financial Reporting
A class action was filed on behalf of all persons and entities that purchased Redwire Corporation (NYSE: RDW) between August 11, 2021 and November 14, 2021. The complaint alleges violations of the Securities Exchange Act of 1934. Redwire purports to offer mission critical space solutions and high reliability components for the next generation space economy.
According to the complaint, Genesis Park Acquisition Corp., a special purpose acquisition company, combined with certain entities to become Redwire on September 2, 2021. On November 10, 2021, Redwire announced it would postpone the release of its third quarter earnings results. The Company “was notified by an employee of potential accounting issues at a business subunit,” and the Audit Committee was investigating the allegations. On this news, Redwire’s stock price fell $1.92, or 16%, to close at $9.99 per share on November 10, 2021. Then, on November 15, 2021, Redwire stated it could not timely file its quarterly report for the period ended September 30, 2021. Due to the investigation, “the Company has not been able to finalize its financial statements or its assessment of effectiveness of its disclosure controls and procedures and any impact” on the report. On this news, the Company’s stock price fell over 8% over two consecutive trading sessions to close at $10.32 per share on November 16, 2021, harming investors.
If you purchased shares of Redwire Corporation (RDW) between August 11, 2021 and November 14, 2021, you have until February 15, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.