Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of Evolv Technologies Holdings, Inc. (EVLV) Investors

Business Wire 5-Nov-2024 4:46 PM

The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of those who acquired Evolv Technologies Holdings, Inc. ("Evolv" or the "Company") (NASDAQ:EVLV) securities during the period of August 19, 2022 to October 30, 2024, inclusive ("the Class Period"). Investors have until December 31, 2024, to apply to the Court to be appointed as lead plaintiff in the lawsuit.

[Click here to learn more about the class action]

On October 25, 2024, Evolv announced that the Company's 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. 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 has self-reported these issues to the Division of Enforcement of the Securities and Exchange Commission and was delaying filing its upcoming quarterly report for the third quarter of 2024. Following this news, the price of Evolv shares declined by $1.63 per share, or approximately 40%, from $4.10 per share on October 24, 2024, to close at $2.47 on October 25, 2024.

Then, on October 31, 2024, Evolv announced the termination of the Company's CEO, Peter George, effective immediately. The Company announced that Michael Ellenbogen, Evolv's Chief Innovation Officer will serve in an interim role until a successor is appointed. On this news, the price of Evolv shares declined by $0.19, or approximately 8%, from $2.34 per share on October 30, 2024, to close at $2.15 per share on October 31, 2024.

The lawsuit alleges that Evolv's financial statements prepared for the Class Period contained material misstatements relating to Evolv's revenue recognition and other reported metrics that are a function of revenue.

If you purchased or otherwise acquired Evolv securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP's website.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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