REKR: Berger Montague Investigates Securities Fraud Allegations Against Rekor Systems, Inc. (REKR); Lead Plaintiff Deadline is August 30, 2021

Philadelphia, Pennsylvania--(Newsfile Corp. - July 7, 2021) - Berger Montague is investigating securities fraud allegations 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 Rekor securities during the Class Period, would like to discuss Berger Montague's investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Donnell Much at dmuch@bm.net or (215) 875-4667, or fill out the contact form on www.bergermontague.com/rekor.

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

Rekor provides vehicle identification and management systems based on artificial intelligence in the United States, Canada, and internationally. One of the main drivers of Rekor's business is its automatic license plate recognition ("ALPR") technology, and the Company has consistently touted the purportedly lucrative prospects of its uninsured vehicle enforcement diversion ("UVED") partnership with the State of Oklahoma ("Oklahoma"), under which the Company receives compensation and commission fees in exchange for using its technology to scan vehicle license plates and compare them against a database to identify vehicles without auto insurance.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that: (i) Rekor's ALPR technology and 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; and (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.

On May 10, 2021, a bill authorizing the establishment of a state UVED program was excluded from the Texas Legislature's Daily House Calendar and left pending in a state committee. On this news, Rekor's stock price fell $5.20 per share, or 27.5%, to close at $13.71 per share on May 10. Following Defendants' conference call with investors the same day during which Defendants confirmed that the Texas UVED program would not go forward, Rekor's stock price fell an additional $2.45 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 published a report that alleged that global competition was "miles ahead" of Rekor and that "potential revenue guidance could be overstated by up to 80%." Also on May 26, 2021, Mariner Research Group published a report that "highlight[ed] government documentation which shows that REKR's revenue opportunities are likely a fraction of what investors expect[.]" Following the publication of the Western Edge and Mariner reports, Rekor's stock 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, D.C., 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 five decades and serves as lead counsel in courts throughout the United States.

Contacts

Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net

Donnell Much, Associate
Berger Montague
(215) 875-4667
dmuch@bm.net

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