OAKLAND, Calif.--(BUSINESS WIRE)--Shares of Evolv Technologies Holdings, Inc. (“Evolv Technology”) plunged over 40% in intraday trading on Friday, October 25, 2024, after the company announced that certain previously issued financial statements from 2022-2024 should no longer be relied upon, and that it will delay the filing of its Quarterly Report for the period ended September 30, 2024. The stock price continued to drop after the company announced on October 31, 2024 that it had fired its CEO. Gibbs Law Group is investigating a potential Evolv Technology (NASDAQ: EVLV) Securities Class Action Lawsuit on behalf of shareholders who lost money in Evolv Technology.
What Should Evolv Technology Investors Do?
If you invested in Evolv Technology, visit our website, or call us toll-free at (888) 410-2925 to get more information and discuss how you may be able to recover your losses. Our investigation concerns whether Evolv Technology. has violated federal securities laws by providing false or misleading statements to investors.
What is the Evolv Technology Lawsuit Investigation About?
On Friday, October 25, 2024, Evolv announced that certain previously issued financial statements from 2022-2024 should no longer be relied upon, and the company will delay the filing of its Quarterly Report for the period ended September 30, 2024.
Following an internal investigation, the company discovered that certain terms and conditions associated with some sales were not shared with the company’s accounting personnel, and that “certain Company personnel engaged in misconduct in connection with those transactions.” A committee of independent directors of Evolv Technology’s Board of Directors also determined that the accounting for certain sales transactions was inaccurate, and estimated that on a net basis, “the sales transactions at issue have resulted in premature or incorrect revenue recognition of approximately $4 million to $6 million” through June 30, 2024. The company admitted that it “expects to report one or more additional material weaknesses in internal control over financial reporting.”
Just a week later, on October 31, 2024, Evolv Technology disclosed that it had terminated its CEO, effective immediately.
Following this news, shares of Evolv Technology plummeted over 40% in intraday trading on Friday, October 25, 2024, and over 8% in intraday trading on Thursday, October 31, 2024, causing significant harm to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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