Evolv Technologies (EVLV) Revenue Misstatements Case

D. Massachusetts

Court

1:24-cv-12768

Case number

08/19/2022

Class period Start

10/30/2024

Class period End

12/31/2024

Lead Plaintiff motion deadline

$EVLV shareholders filed a claim against Evolv Technologies for concealing revenue misstatements and improper financial reporting practices.
After financial news on October 25, 2024, $EVLV dropped by approximately 40%.
Evolv investors can join this case to stay informed about potential recovery.
Case Details

Between the second quarter of 2022 and the second quarter of 2024, Evolv assured investors of substantial revenue growth across various channels, consistently reporting strong performance and expanding recurring revenues.

However, on October 25, 2024, Evolv revealed that some sales had extra conditions that weren’t communicated to the accounting team. A few employees also didn’t follow company rules by failing to fully report the details of these sales.

Evolv also disclosed that it had self-reported these issues to the SEC and anticipated further weaknesses in its internal controls.

Following this announcement, $EVLV fell by roughly 40%.

Then, on October 31, 2024, Evolv terminated its CEO, Peter George, and appointed its Chief Innovation Officer, Michael Ellenbogen, as interim CEO.

Following this news, $EVLV declined by an additional 8%.

Based on these events, $EVLV shareholders filed a claim against Evolv, accusing it of:
The company failed to disclose sales arrangements that did not align with its accounting practices.
It misled investors about its financial performance and overstated its revenue growth.
Investors believe Evolv misled them by failing to disclose improper sales arrangements and overstating revenue growth.

Case Status

Lead Plaintiff Submission

Alleged Offence

Mismanagement,

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

10/25/2024

Filing date

11/01/2024

Lead Plaintiff Deadline

12/31/2024

Evolv Technologies (EVLV) Revenue Misstatements Case

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