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AgEagle Aerial Systems, Inc. Class Action Lawsuit

Company Name
AgEagle Aerial Systems, Inc.
Stock Symbol
UAVS
Class Period
September 3, 2019 to February 18, 2021
Motion Deadline
April 27, 2021
Court
Central District of California
15 days left to seek lead plaintiff status

Case Summary

The AgEagle Aerial Systems, Inc. class action lawsuit charges AgEagle Aerial and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of AgEagle Aerial publicly traded securities between September 3, 2019 and February 18, 2021, inclusive (the “Class Period”).  The AgEagle Aerial class action lawsuit was commenced on February 26, 2021 in the Central District of California and is captioned Lopez v. AgEagle Aerial Systems, Inc., No. 21-cv-01810.

AgEagle Aerial is engaged in the design, engineering, and manufacturing of commercial drones, as well as in providing drone services and solutions to the agriculture industry.  On September 3, 2019, AgEagle Aerial issued a press release entitled “AgEagle Enters the Fast-Growing Commercial Drone Package Delivery Market,” with a subtitle reading, “Initial Purchase Orders Received and Testing Underway.”  Thereafter, on April 29, 2020, a video posted on the personal website and YouTube channel of the daughter of AgEagle Aerial’s founder, defendant Bret Chilcott, showed how to safely unbox the drones and included the logos of AgEagle Aerial and Amazon side-by-side.  News of this video led to widespread speculation that AgEagle Aerial’s “major unnamed ecommerce” partner was in fact Amazon.

The AgEagle Aerial class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) AgEagle Aerial did not have a partnership with Amazon and in fact never had any relationship with Amazon; (ii) rather than correct the public’s understanding about a partnership with Amazon, defendants were actively contributing to the rumor that AgEagle Aerial had a partnership with Amazon; and (iii) as a result, defendants’ statements about AgEagle Aerial’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On October 14, 2020, news broke that Amazon did not have a partnership agreement with AgEagle Aerial, and in fact never did, when the Wichita Business Journal published a story with the headline “Exclusive: Who’s AgEagle’s big customer?  We now know who it’s not,” reporting that “the retail giant has put the rumor to rest, with a company spokesperson telling the WBJ there is no partnership and that Amazon, to date, has not worked with AgEagle in any capacity.”

Then, on February 18, 2021, Bonitas Research published a report stating that AgEagle Aerial “was a pump & dump scheme orchestrated by . . . AgEagle founder and former chairman Bret Chilcott and other UAVS insiders to defraud US investors.”  On this news, shares of AgEagle Aerial fell more than 36%, damaging investors

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased AgEagle Aerial securities during the Class Period to seek appointment as lead plaintiff in the AgEagle Aerial class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the AgEagle Aerial class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the AgEagle Aerial class action lawsuit.  An investor’s ability to share in any potential future recovery of the AgEagle Aerial class action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the AgEagle Aerial class action lawsuit or have questions concerning your rights regarding the AgEagle Aerial class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the AgEagle Aerial class action lawsuit must be filed with the court no later than April 27, 2021.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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