Evolv Technologies (EVLV) Delays Filing Quarterly Report After Previously Admitting To Improper Revenue Recognition – Hagens Berman
SAN FRANCISCO, Nov. 21, 2024 (GLOBE NEWSWIRE) -- On Nov. 13, 2024 Evolv Technologies Holdings, Inc. (NASDAQ: EVLV) announced that it would not timely file its quarterly report with the Securities and Exchange Commission because of its pending investigations into the company’s sales practices.
The company said that “certain sales, including sales to one of its largest channel partners, were subject to extra-contractual terms and conditions, some of which were not shared with the Company’s accounting personnel, and that certain Company personnel engaged in misconduct in connection with those transactions.”
Evolv further said that “among other things, 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[]” and that “these misstatements are material[.]”
The company has not yet quantified the amounts of improperly recognized revenues and other financial metrics.
A securities class action lawsuit was previously filed against Evolv Technologies Holdings, Inc. and certain of its executives, alleging violations of federal securities laws. The lawsuit, filed in the U.S. District Court for the District of Massachusetts, is brought on behalf of investors who purchased Evolv securities between August 19, 2022, and October 30, 2024.
Hagens Berman urges investors in Evolv who suffered substantial losses to submit your losses now.
Class Period: Aug. 19, 2022 – Oct. 30, 2024
Lead Plaintiff Deadline: Dec. 31, 2024
Visit: www.hbsslaw.com/investor-fraud/evlv
Contact the Firm Now: EVLV@hbsslaw.com
844-916-0895
Evolv Technologies Holdings, Inc. Securities Class Action (EVLV):
The complaint alleges that Evolv’s financial statements for the period between the second quarter of 2022 and the second quarter of 2024 contained material misrepresentations and omissions related to the company’s revenue recognition and other financial metrics.
On October 25, 2024, Evolv issued a press release acknowledging material weaknesses in its internal controls over financial reporting and disclosing that certain sales, particularly to a major channel partner, were subject to undisclosed terms and conditions. The company also revealed that certain employees engaged in misconduct related to these transactions. Following this announcement, Evolv’s stock price plummeted approximately 40%.
Then, on October 31, 2024, Evolv announced the termination of its CEO, Peter George. The company’s stock price declined further, falling approximately 8% on the news.
The lawsuit alleges that Evolv and its executives misled investors by failing to disclose material information about the company’s financial performance and internal controls. Investors who suffered losses during the class period may be eligible to recover their damages.
Shareholder rights firm Hagens Berman is investigating the allegations.
“We are deeply concerned by the recent revelations regarding Evolv Technologies' financial reporting and sales practices. Our investigation will rigorously examine the company's internal controls, revenue recognition methods, and the role of senior management in this alleged misconduct,” said Reed 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.
Contact:
Reed Kathrein, 844-916-0895
© Copyright Globe Newswire, Inc. All rights reserved. The information contained in this news report may not be published, broadcast or otherwise distributed without the prior written authority of Globe Newswire, Inc.
