Rekor sues former director Viraj Mehta in Delaware over Dec. 2025 financing

Rekor Systems, Inc.

Complaint filed Oct. 16, 2026 in Delaware Chancery alleges Mehta breached fiduciary duty by hiding Arctis fund's wind-down and plan to distribute ~9% Rekor stake while retaining $5M note.
Seeks damages, disgorgement and restitution of director compensation; says Mehta steered Dec. 2025 financing with 8,571,428 seven-year warrants.
Complaint says side letter bars ATM sales below $1.75 and gives buyer 30% of every qualifying financing through Dec. 2027.
Complaint says buyer sold entire allocation within quarter; Mehta resigned Jan. 14, 2026, and annual meeting failed quorum in May and September.
Rekor cites $15M Revenue Notes due Dec. 15, 2026 it cannot meet without refinancing, restructuring or new capital; stock fell from ~$0.62 to ~$0.36.

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