Redwire Corporation Investigation
The law firm of Kirby McInerney LLP is investigating potential claims against Redwire Corporation (“Redwire” or the “Company”) (NYSE: RDW). The investigation concerns whether Redwire has violated the federal securities laws and/or engaged in other unlawful business practices.
In September 2021, Redwire merged with Genesis Park Acquisition Corp, a special purpose acquisition company.
On November 10, 2021, Redwire announced that it would postpone the release of its third quarter earnings results. The Company “was notified by an employee of potential accounting issues at a business subunit[,]” and the Audit Committee was investigating the allegations. On this news, the Company’s stock price declined by $1.92 per share, or approximately 16.1%, from $11.91 per share to close at $9.99 per share on November 10, 2021.
Then, on November 15, 2021, Redwire stated that it could not timely file its quarterly report for the period ended September 30, 2021. Due to the pending investigation into the accounting issues at a business subunit, “the Company has not been able to finalize its financial statements or its assessment of the effectiveness of its disclosure controls and procedures and any impact” on the report. On this news, the Company’s stock price declined by $0.75 per share, or approximately 6.67%, from $11.25 per share to close at $10.50 per share on November 15, 2021.