MOUNTAIN VIEW, Calif. - Knightscope, Inc. (NASDAQ: KSCP), a technology company focused on public safety, has initiated legal action against Capybara Research and its owner Igor Appelboom, along with Accretive Capital LLC, doing business as Benzinga. The lawsuit, filed in the United States District Court for the Southern District of New York, accuses the defendants of publishing defamatory short seller reports intended to manipulate Knightscope's stock price for their gain.
The case, formally known as Knightscope, Inc. v. Capybara Research et. al., Case No. 1:23-cv-11050-DLC, alleges that Capybara Research took short positions in Knightscope’s stock and then released reports disparaging the company, which the plaintiff claims caused a decline in its market price. Knightscope asserts that these actions were part of a strategy to profit from the anticipated drop in share value following the publication of the reports.
Knightscope’s legal action reflects its stance against what it perceives as fraudulent and malicious attempts to damage its financial and market standing. The company has expressed its intention to litigate the allegations vigorously. However, it acknowledges that the actual results of the litigation could materially differ from its expectations due to various risks and uncertainties.
This article is based on a press release statement from Knightscope, Inc.
InvestingPro Insights
As Knightscope, Inc. (NASDAQ: KSCP) navigates through legal challenges, investors and stakeholders are closely monitoring the company's financial health and market performance. Recent data from InvestingPro provides a snapshot of Knightscope's current financial position and market sentiment.
InvestingPro Data highlights a market capitalization of $49.61 million USD, signaling a relatively small player within the technology sector. Despite a challenging period, the company has reported a remarkable revenue growth of 194.02% over the last twelve months as of Q3 2023. However, this growth has not translated into profitability, with a negative gross profit margin of -10.99% in the same period. The stock price has also been subject to significant volatility, as evidenced by a year-to-date price total return of -13.08% and a one-year price total return of -55.04%.
InvestingPro Tips for Knightscope reveal a mixed outlook. On the positive side, the company holds more cash than debt on its balance sheet and analysts anticipate sales growth in the current year. This could provide some financial stability and potential for future growth. On the other hand, Knightscope is quickly burning through cash and suffers from weak gross profit margins. Moreover, the company is not expected to be profitable this year, and the stock price has experienced a substantial decline over various time frames, including the last year and the last three months.
For investors seeking a deeper analysis, InvestingPro offers additional insights on Knightscope. In total, there are 15 InvestingPro Tips available, which can provide more nuanced information to help evaluate the company's prospects. Interested readers can access these tips by visiting the specific InvestingPro page for Knightscope at https://www.investing.com/pro/KSCP. Additionally, users can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further enriching their investment research experience.
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