The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Rekor Systems, Inc. f/k/a Novume Solutions, Inc. (NASDAQ: REKR) who purchased shares between April 12, 2019 and May 25, 2021. The action, which was filed in the United States District Court for the District of Maryland, alleges that the Company violated federal securities laws.
(i) Rekor’s automatic license plate recognition (“ALPR”) technology and uninsured vehicle enforcement diversion (“UVED”)-related business is outclassed by global competitors with an established, dominant market share; (ii) it was unlikely that states would pass legislation authorizing deals similar to Rekor’s Oklahoma UVED partnership because of, inter alia, state and local privacy laws and related public concerns; (iii) Rekor’s UVED partnership was not as profitable as Defendants had led investors to believe because of known impediments to enrollment rates and costs associated with the partnership; (iv) accordingly, Rekor had overstated its potential revenues, profitability, and overall ALPR- and UVED-related business prospects; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Shareholders have until August 30, 2021 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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