Rekor Systems Takes Legal Action Against Former Director Following Extensive Investigation into Alleged Breaches of Fiduciary Duty in Connection with a December 2025 Financing with a Hedge Fund
Key Highlights
- ➤Rekor filed a Delaware lawsuit against a former director over alleged fiduciary-duty breaches.
- ➤Complaint concerns alleged nondisclosure and conflicts tied to December 2025 hedge-fund financing.
- ➤Rekor identified approximately 14% of outstanding shares through one DTC participant.
- ➤Company is reviewing potential Section 13(d) and Section 16(b) violations.
- ➤Rekor reported unusually elevated stock-borrow utilization but no unlawful trading determination.
Expert Statements
Robert A. Berman, Chairman and Chief Executive Officer of Rekor Systems
“Our Board took this action after months of careful investigation. Directors have a fundamental obligation to provide complete and candid information when critical financing decisions are being made. We believe the facts warrant judicial review, and we intend to pursue the Company’s claims and every appropriate remedy available to protect Rekor and its shareholders.”
Robert A. Berman, Chairman and Chief Executive Officer of Rekor Systems
“This is a first step, not the end of our review. We continue to examine unusually high stock-borrow utilization rates, other unusual activity in Rekor common stock, and relevant financing and ownership matters. We will follow the evidence wherever it leads. Access to capital should not come at the expense of market integrity, corporate governance or the rights of public shareholders.”
Delaware action is the first step by Rekor's Board following the October 16th annual meeting and months of investigation by the Company and its counsel into the extremely high utilization rate of the Company's common stock to borrow and other unusual activity
COLUMBIA, Md., Oct. 19, 2026 (GLOBE NEWSWIRE) -- Rekor Systems, Inc. (NASDAQ: REKR) ("Rekor" or the "Company") today announced that on October 16, 2026, it filed a complaint in the Delaware Court of Chancery against a former member of its Board of Directors, alleging breaches of fiduciary duty in connection with the Company's December 2025 financing with a hedge fund. The Board authorized the action following months of investigation by the Company and its legal counsel. The complaint is being furnished as an exhibit to the Company's Current Report on Form 8-K and may be accessed through Rekor's filings on the SEC's EDGAR website. View Rekor SEC filings on EDGAR.
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