SAN DIEGO--(BUSINESS WIRE)--Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Evolution AB (OTC: EVVTY) American Depository Shares (ADSs) between February 14, 2019 and October 25, 2023. Evolution is a global online gaming company that develops, produces, markets, licenses, and runs online casino solutions.
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What is this Case About: Evolution AB (EVVTY) Misled Investors Regarding its Business Prospects
According to the complaint, on January 24, 2022, Analyst Alpha Generation Limited released a report on Evolution to certain institutional investors. According to subsequent media coverage, the report stated that (1) a significant portion of Evolution's revenue "could be at risk due to future regulatory clampdowns," and (2) Evolution was "exposed to revenues from what we [the authors of the Report] believe to be illegal gambling activities." On this news, Evolution's ADS price fell $19.78 per ADS, or approximately 15%, over the following three trading sessions, to close at $115.00 per ADS on January 27, 2022.
On April 26, 2022, Australia's gambling regulator announced that it had requested that Australian internet service providers block six online gambling sites, the operators of at least five of which were direct or indirect customers of Evolution, alleging that the sites were engaged in illegal gambling. On this news, Evolution's ADS price fell $6.02 per ADS over the following two trading sessions, to close at $96.73 per ADS on April 27, 2022.
On May 4, 2022, industry press reported that the Swedish Administrative Court had upheld most of the record Swedish fines of 175 million Swedish Krona (approximately $17.8 million) that had been imposed on brands operated by ComeOn Group, a subsidiary of Cherry AB (publ), a customer of Evolution, in relation to breaches of Swedish online gambling regulations. On this news, Evolution's ADS price fell $12.34 per ADS, or approximately 11%, to close at $101.09 per ADS on May 5, 2022.
On May 7, 2022, media outlets reported that industry participants had lobbied the UK government against an overhaul of gambling laws in the UK. On this news, Evolution's ADS price fell $14.84 per ADS over the following three trading sessions, to close at $87.25 per ADS on May 11, 2022.
On April 27, 2023, Evolution released its financial and operating results for the first quarter of 2023. Among other items, the Company disclosed that revenue from the RNG segment of its business did not grow, and that its North American business segment had experienced a low growth rate. On this news, Evolution's ADS price fell $10.94 per ADS over the following four trading sessions, to close at $125.26 per ADS on May 2, 2023.
Finally, on October 26, 2023, Evolution released its financial and operating results for the third quarter of 2023 and held an analyst call to discuss the results. In both, Evolution disclosed that the Company faced delays in opening new studios and that revenues for its RNG and North American business segments did not grow. On this news, Evolution's ADS price fell $7.15 per ADS over the following two trading sessions, to close at $86.80 per ADS on October 27, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Evolution AB. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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