LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that it has been appointed Lead Counsel in the securities class action against Evolv Technologies Holdings, Inc. (“Evolv” or the “Company”) (NASDAQ: EVLV) and certain executive officers of the Company, currently pending in the United States District Court for the District of Massachusetts.
Investors that purchased Evolv common stock are encouraged to contact Charles H. Linehan, Esq. of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to discuss the status of the case and the claims in the litigation.
On November 2, 2022, IPVM published a report detailing Evolv’s “deceptive marketing and colluding with NCS4, a public entity, to hide test results showing failures at weapons screening.” That same day, BBC published reported that a previous National Center for Spectator Sports Safety and Security (“NCS4”) report had been manipulated by Evolv employees, including deleting a reference to the system being incapable of detecting every knife. On this news, Evolv’s stock price fell $0.08, or 2.7%.
Then, on October 12, 2023, Evolv disclosed that the U.S. Federal Trade Commission requested information about “certain aspects” of the Company’s “marketing practices.” On this news, Evolv’s stock price fell $0.58, or 13.3%, to close at $3.77 per share on October 12, 2023.
Then, on February 20, 2024, Evolv disclosed that the U.S. Securities and Exchange Commission (“SEC”) notified the Company that the SEC was initiating a “non-public, fact finding inquiry.” On this news, Evolv’s stock price fell $0.82, or 15.7%, to close at $4.41 per share on February 20, 2024.
Then, on March 13, 2024, the independent company, which Evolv claimed had “tested and validated” its technology, told BBC News that it was “not correct to say [it] ‘validated’ the system.” On this news, Evolv’s stock price fell $0.13, or 3.5%.
Then, on October 25, 2024, Evolv announced that it would restate its financial statements since second quarter 2022 due to improper revenue recognition. The announcement follows an investigation into “the Company’s sales practices, including whether certain sales of products and subscriptions . . . were subject to extra-contractual terms and conditions that impacted revenue recognition and other metrics.” On this news, the Company’s stock fell 40% to close at $2.47 per share.
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