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Evolv Technologies (EVLV) Shares Crash After Admitting To Improper Revenue Recognition Hagens Berman
Globe Newswire 4-Nov-2024 1:43 PM
SAN FRANCISCO, Nov. 04, 2024 (GLOBE NEWSWIRE) -- On October 25, 2024, Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) shares fell more than 40% Friday after the weapons-screening company said it found misconduct by some of its employees related to sales practices forcing the company to restate its financials over a two-year period.
Accordingly, Hagens Berman has begun an investigation into the matter and urges investors in Evolv who suffered substantial losses to submit your losses now.
Investigation Into Evolv Technologies Holdings, Inc. (EVLV):
The investigation is focused on the propriety of Evolv's repeated assurances that its financial reports complied with applicable accounting rules and that its internal controls over financial reporting were sufficient.
Evolv's assurances came under question on October 25, 2024, when it said that it would not timely file its quarterly report on Form 10-Q for the quarter ended September 30, 2024.
The company also said that: (1) it "made a preliminary determination that certain sales, including sales to one of its largest channel partners, were subject to extra-contractual terms and conditions[;]" (2) "certain Company personnel engaged in misconduct in connection with those transactions[;]" and (3) "revenue was prematurely or incorrectly recognized in connection with financial statements prepared for the periods between the second quarter of 2022 and the second quarter of 2024."
As a result, Evolv warned investors against relying on its financial statements for the years ended December 31, 2022 and 2023 and for the quarters and year-to-date periods ended June 30, 2022, September 30, 2022, March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024.
This news drove the price of Evolv shares crashing about 46% lower during intraday trading on October 25, 2024.
"We're focused on whether Evolv intentionally cooked its books and the pending restatements," said Reid Kathrein, the partner leading the investigation.
If you invested in Evolv or have knowledge that may assist the firm's investigation, submit your losses now.
If you'd like more information and answers to frequently asked questions about the Evolv investigation, read more.
Whistleblowers: Persons with non-public information regarding Evolv should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email EVLV@hbsslaw.com.
About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
