Berger Montague Investigates Allegations of Securities Fraud Against Rekor Systems, Inc. (REKR); The lead applicant deadline is August 30, 2021

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Philadelphia, Pa .– (Newsfile Corp. – July 7, 2021) – Berger Montague is investigating allegations of securities fraud against Rekor Systems, Inc. (“Rekor” or the “Company”). The Firm is investigating these claims on behalf of investors who purchased Rekor Securities (NASDAQ: REKR) between April 12, 2019 and May 25, 2021 (the “Class Period”).

If you purchased securities from Rekor during the Class Period, wish to discuss Berger Montague’s investigation, or have questions regarding your rights or interests, please contact Lawyers Andrew Abramowitz at [email protected] or (215) 875-3015, or Donnell Much at [email protected] or (215) 875-4667, or complete the contact form at www.bergermontague.com/rekor.

Whistleblowers: Anyone with non-public information regarding Rekor is encouraged to confidentially attend Berger Montague’s investigation or take advantage of the SEC’s whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of the recoveries obtained by the SEC. For more information, contact us.

Rekor provides artificial intelligence-based vehicle identification and management systems in the United States, Canada and internationally. A major driver of Rekor’s business is its Automatic License Plate Recognition (“ALPR”) technology, and the company has consistently touted the supposedly lucrative prospects of its uninsured vehicle diversion partnership (” UVED ”) with the State of Oklahoma (“ Oklahoma ”), under which the Company receives compensation and commissions in exchange for using its technology to scan vehicle license plates and compare them to a database to identify vehicles without auto insurance.

The complaint alleges that, throughout the period of the action, the defendants made materially false and misleading statements and / or failed to disclose that: (i) Rekor’s ALPR technology and UVED-related activities are outclassed by global competitors with an established and dominant market share; (ii) states were unlikely to pass legislation authorizing agreements similar to Rekor’s Oklahoma UVED Partnership due, among other things, to state and local privacy laws and related public concerns; and (iii) Rekor’s UVED partnership was not as profitable as the defendants had led investors to believe due to known barriers to enrollment rates and costs associated with the partnership.

The story continues

On May 10, 2021, a bill to authorize the creation of a state UVED program was excluded from the daily schedule of the Texas legislature and left hanging in a state committee. Following this news, Rekor’s share price fell $ 5.20 per share, or 27.5%, to close at $ 13.71 per share on May 10. Following the defendants’ conference call with investors on the same day in which the defendants confirmed that the Texas UVED program would not go ahead, Rekor’s share price fell 2.45 an additional $ per share, or 17.87%, to close at $ 11.26 per share on May 11, a two-day decline of $ 7.65 per share, or 40.45%.

Then, on May 26, 2021, private investor Western Edge released a report claiming that the global competition was “miles ahead” of Rekor and that “the potential revenue forecast could be overstated by up to 80%.” Also on May 26, 2021, the Mariner Research Group released a report that “highlights[ed] government documentation that shows REKR’s income opportunities are likely a fraction of what investors expect[.]“Following the publication of the Western Edge and Mariner reports, Rekor’s share price fell $ 0.44 per share, or 3.93%, to close at $ 10.77 per share on May 26.

Berger Montague, with offices in Philadelphia, Minneapolis, Washington, DC and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over of five decades and acts as a senior advisor. in courts across the United States.

Contacts

Andrew Abramowitz, Senior Advisor Berger Montague (215) [email protected]

Donnell Much, partner Berger Montague (215) [email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/89659

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