RDW.US
id: 1396
Redwire Corporation (RDW) $8M Investor Settlement
Eligible claimants can submit their claims for compensation.
M.D. Florida
Court3:21-cv-01254
Case number03/25/2021
Class period Start03/31/2022
Class period End06/24/2025
Claim deadlineRedwire Corporation ($RDW) has agreed to settle $8M with investors to resolve claims that it hid accounting irregularities at its subsidiary, LoadPath, which led to incorrect financial reporting, weak internal controls, and delays in releasing financial statements.
Outline
In 2021, Redwire was accused of hiding major accounting issues, including revenue report delays, improper financial reporting, and weak financial controls. Following this, $RDW fell 16% and Redwire faced a lawsuit from investors.
Timeline
- March 2021 – Redwire went public through a SPAC merger.
- September 3, 2021 – Redwire began trading on the NYSE under the symbol $RDW.
- November 10, 2021 – Redwire postponed Q3 earnings release, citing accounting issues at a subsidiary, causing $RDW to drop 16%.
- December 17, 2021 – Investors filed a lawsuit, alleging inaccurate financial reporting and internal control weaknesses.
- November 2024 – Redwire agreed to settle to resolve investor claims.
Background
In March 2021, Redwire went public through a SPAC merger with GPAC, promoting itself as a key provider of satellite manufacturing and space robotics for government and commercial missions.
However, in November 2021, Redwire delayed its Q3 earnings release, citing accounting issues at the subsidiary LoadPath.
This triggered an internal Audit Committee investigation, which found that this subsidiary had been improperly recognizing revenue, lacked internal control procedures, and had financial reporting deficiencies. Following this news, $RDW dropped 16%.
By December 2021, investors filed a lawsuit, claiming Redwire was hiding accounting irregularities and had internal control weaknesses.
What Can Investors Expect Now?
Redwire Corporation ($RDW) has agreed to settle $8M with investors to resolve claims that it hid accounting irregularities at its subsidiary, LoadPath, which led to incorrect financial reporting, weak internal controls, and delays in releasing financial statements.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Claims
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.42
Filing date
12/17/2021
Plaintiffs
Jed Lemen
Attorneys
Hagens Berman Sobol Shapiro LLP; The Schall Law Firm
Defendants
Peter Cannito; William Read
Judge
Timothy J. Corrigan
Administrator
Strategic Claims Services
Settlement agreement date
2024-11-15
Court hearing date
07/31/2025
Exclusion deadline
07/10/2025
Objection deadline
07/10/2025
Attorney fee
$3,190,000
Class wide damages
$25,600,000
Trades matching type
FIFO
+$8,000,000
Cash Settlement AmountFrequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
How much will my payment be?
What is 11th Estate?