Silver Law Group is investigating Rekor Systems, Inc. (REKR) regarding potential claims for investors in the company to recover losses. The investigation concerns potential violations of the federal securities laws.
If you have losses from investing in Rekor Systems, Inc. (“REKR”) contact Silver Law Group for a no-cost consultation at (800) 975-4345 or at email@example.com.
The company’s largest revenue stream comes from a contract for their systems for tracking uninsured motorists. This UVED (uninsured vehicle enforcement diversion) partnership is with the state of Oklahoma. Rekor would identify drivers with their ALPR or “automated license plate readers,” and collect fees on behalf of the state.
Despite comments about winning similar contracts with New York, Florida, Texas, and numerous other states, these mandates did not pass, and no new contracts have been signed. Currently, Oklahoma is the only UVED partnership.
Two reports indicate that the ambitious figures for Oklahoma discussed by CEO Robert Berman were speculative, at best, and overstated by 96%. A report from Western Edge indicated that the company’s “potential revenue guidance” may be overstated by as much as 80%. Additionally, the Mariner Research Group published a report titled “REKR—Government documents to not support investor expectations.”
After both reports became public, Rekor’s stock price quickly dropped considerably during the intraday trading on May 26, 2021.
Furthermore, Rekor’s commercial investment in a contactless purchasing system with Mastercard has never progressed past the “pilot” stage. Other companies utilizing contactless purchasing have since fully implemented their systems.
In February, 2021, Rekor announced the closing of an underwritten public offering of more than 6 million shares of common stock, which resulted in gross proceeds of over $75 million. Lake Street Capital Markets, LLC and B. Riley Securities, Inc. were co-managers for the offering.
Are You An Investor In Rekor (REKR)?
If you’re an investor in Rekor, contact Silver Law Group for additional information and to help us in our investigation.
Silver Law Group is a nationally-recognized class action law firm representing victims of investment fraud. Our attorneys represent investors in class action lawsuits against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct.
Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Contact us for a no-cost consultation at firstname.lastname@example.org or toll free at (800) 975-4345.