Evolv Technologies Holdings, Inc.
Case Overview
55 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 12/31/2024 |
Status: | Status: Investigating |
Company Name: | Company Name: Evolv Technologies Holdings, Inc. |
Court: | Court: District of Massachusetts |
Case Number: | Case Number: 1:24cv12768 |
Class Period: | Class Period: 08/19/2022 - 10/30/2024 |
Ticker: | Ticker: EVLV |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
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.
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.
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.