Glancy Prongay & Murray Appointed Lead Counsel in Evolv Technologies Lawsuit
Investors Urged to Seek Updates on Litigation Status
Glancy Prongay & Murray LLP (“GPM”) has formally been appointed as Lead Counsel in a securities class action lawsuit against Evolv Technologies Holdings, Inc. (“Evolv” or the “Company”) EVLV and several of its executive officers. This lawsuit is currently being heard in the United States District Court for the District of Massachusetts.
Investors who have purchased Evolv common stock are encouraged to reach out to Charles H. Linehan, Esq. of GPM by calling 310-201-9150 or toll-free at 888-773-9224, or by emailing shareholders@glancylaw.com to discuss the litigation’s developments.
On November 2, 2022, a report from IPVM alleged that Evolv engaged in “deceptive marketing” and collaborated with the National Center for Spectator Sports Safety and Security (“NCS4”), a public entity, to conceal negative test results regarding its weapon screening technology. Following this information, which suggested that the system could not reliably detect all types of knives, Evolv’s stock dropped by $0.08, or 2.7%.
Subsequently, on October 12, 2023, Evolv revealed that the U.S. Federal Trade Commission had requested information regarding “certain aspects” of its marketing practices. This disclosure led to a significant decrease in Evolv’s stock price, which fell $0.58, or 13.3%, to close at $3.77 per share.
Later, on February 20, 2024, the U.S. Securities and Exchange Commission (“SEC”) informed Evolv that it was initiating a “non-public, fact-finding inquiry.” The market responded negatively, and the stock price fell by $0.82, or 15.7%, finishing at $4.41 per share.
Further complications emerged on March 13, 2024, when an independent testing company, initially cited by Evolv as having “validated” its technology, stated to BBC News that it would be inaccurate to claim validation of the system. This revelation contributed to a decrease of $0.13, or 3.5% in Evolv’s stock price.
The situation escalated on October 25, 2024, when Evolv announced that it would need to restate its financial statements dating back to the second quarter of 2022 due to improper revenue recognition. This followed an investigation into the Company’s sales practices, particularly whether certain sales involved extra-contractual terms affecting revenue recognition. Following this announcement, Evolv’s stock plummeted 40%, closing at $2.47 per share.
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