Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Evolv Technologies Holdings, Inc. (EVLV)

Globe Newswire 4-Nov-2024 11:35 AM

NEW YORK, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of all persons or entities who purchased or otherwise acquired Evolv Technologies Holdings, Inc. ("Evolv Technologies" or the "Company") (NASDAQ:EVLV) securities between August 19, 2022 and October 30, 2024, inclusive (the "Class Period"). The lawsuit seeks to recover damages for the Company's investors under the federal securities laws.

The Complaint alleges that on October 25, 2024, the Company announced that its financial statements issued between the second quarter of 2022 and the second quarter of 2024 should not be relied upon due to material misstatements impacting revenue recognition and other previously reported metrics that are a function of revenue. The Company revealed that "certain sales, including sales to one of its largest channel partners, were subject to extra-contractual terms and conditions" not shared with the Company's accounting personnel "and that certain Company personnel engaged in misconduct in connection with those transactions." The Company also announced that it "expects to report one or more additional material weaknesses in internal control over financial reporting," was delaying filing its upcoming quarterly report for the third quarter of 2024, and that it has "self-reported these issues" to the Division of Enforcement of the SEC. On this news, the price of the Company stock declined roughly 40%, from $4.10 per share on October 24, 2024, to $2.47 per share on October 25, 2024.

Investors who purchased or otherwise acquired shares of Evolv Technologies should contact the Firm prior to the December 31, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.