LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Evolv Technologies Holdings, Inc. f/k/a NewHold Investment Corp. (“Evolv” or the “Company”) (NASDAQ: EVLV) securities between June 28, 2021 and March 13, 2024, inclusive (the “Class Period”). Evolv investors have until May 24, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
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 an article alleging that, despite Evolv’s claims that its AI scanners can detect all weapons, “they may fail to detect certain types of knives, as well as some bombs and components.” Further, the article reported that a previous National Center for Spectator Sports Safety and Security (“NCS4”) 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%, to close at $2.85 per share on November 2, 2022, thereby injuring investors.
Then, on May 23, 2023, BBC News reported that a student was attacked with a 9-inch long knife that had gone undetected by the Evolv weapons scanner at his school. The attacked triggered an internal investigation by the school district, which determined that “the Evolv Weapon Detection system… was not designed to detect knives.” On this news, Evolv’s stock price fell $0.45, or 7.6%, to close at $5.50 per share on May 23, 2023.
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 BBC released an article stating that Evolv claimed that its AI weapons scanner had been tested by the UK Government's National Protective Security Authority (“NPSA”), however, the NPSA does not do that type of testing. Evolv then stated that an independent company had “tested and validated” its technology using NPSA standards. Following those claims, the independent company that did the testing 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%, to close at $3.57 per share on March 13, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Evolv materially overstated the efficacy of its products; (2) the lack of effectiveness of Evolv’s products with regard to detecting knives and guns led to an increased risk of undetected weapons entering locations such as schools; (3) Evolv deceived the general public, its customers, and its investors regarding the effectiveness of its products; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Evolv securities during the Class Period, you may move the Court no later than May 24, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Evolv securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
