February 26, 2021 - An investor in shares of AgEagle Aerial Systems, Inc. (NYSE: UAVS) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by AgEagle Aerial Systems, Inc. in connection with certain allegedly false and misleading statements made between September 3, 2019 and February 18, 2021.
Wichita, KS based AgEagle Aerial Systems, Inc. designs, develops, produces, distributes, and supports unmanned aerial vehicles for the precision agriculture industry in the United States and internationally. AgEagle Aerial Systems, Inc. reported that its annual Total Revenue rose from $107.81 million in 2018 to $296.67 million in 2019, and that its Net Loss increased from $2.08 million in 2018, to $2.52 million in 2019.
On February 18, 2021, a report was published entitled AMAZON SAYS NO PARTNERSHIP in which the reported detailed a series of allegedly alarming red flags about AgEagle Aerial Systems, Inc. Specifically, the report stated, We believe that AgEagle Aerial Systems Inc.'s (NASDAQ: UAVS) ('UAVS,' 'AgEagle,' or the 'Company') was a pump & dump scheme orchestrated by Alpha Capital Anstalt ('Alpha Capital'), AgEagle founder and former chairman Bret Chilcott and other UAVS insiders to defraud US investors. Further, the report claimed, In April 2020 rumor of a partnership between Amazon.com,Inc. & AgEagle was started by a promotional video uploaded to AgEagle's founder and former chairman Bret Chilcott's daughter's personal website and youtube account (the 'Promo Video'). Since then, a 54 page due diligence document has circulated on Reddit which at various times referenced the Promo Video and suggested that the AgEagle's partnership with Amazon was real. Additionally, the report said, We have found no evidence of any 'major e-commerce customer' or any drone technology credited to AgEagle other than reference to the Promo Video leaked by AgEagle's founder and former Chairman Bret Chilcott's daughter. The report concluded. In 4Q'20 an Amazon spokesperson disclosed to reporter Daniel McCoy of the Witchita Business Journal that Amazon specifically does not have any dealings with AgEagle whatsoever. Shares of AgEagle Aerial Systems, Inc. (NYSE: UAVS) declined from $17.68 per share on February 10, 2021, to as low as $7.00 per share on February 23, 2021. According to the complaint the plaintiff alleges on behalf of purchasers of AgEagle Aerial Systems, Inc. (NYSE: UAVS) common shares between September 3, 2019 and February 18, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between September 3, 2019 and February 18, 2021, the defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that AgEagle did not have a partnership with Amazon and in fact never had any relationship with Amazon, that rather than correct the public’s understanding about a partnership with Amazon, defendants were actively contributing to the rumor that AgEagle had a partnership with Amazon, and that as a result, defendants’ statements about AgEagle’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.