A securities class action has been filed in the USDC — MA. against Evolv Technologies Holdings, Inc. (EVLV) (“Evolv” or the “Company”), on behalf of all those that purchased or otherwise acquired Evolv securities between August 19, 2022 and October 30, 2024, both dates inclusive (the “Class Period”).

Evolv is a security technology company that utilizes AI-based screening designed to help create safer experiences. The Company’s solutions and services are designed to capture relevant visitor data customers can leverage to inform their security operations. The Company’s key market categories include education, healthcare, sports, and live entertainment.

The claim arises 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.

The complaint alleges material misstatements in the Company’s financial statements prepared for the periods between the second quarter of 2022 and the second quarter of 2024 relating to Evolv’s revenue recognition and other reported metrics that are a function of revenue. In truth, Evolv’s 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, distorting the Company’s reported revenue and other metrics that are a function of revenue during the Class Period. What’s more, far from the Company’s touted “growing momentum” and “continued traction” with channel partners, the Company’s personnel was engaged in misconduct concerning sales to one of the Company’s largest channel partners.

On this news, the price of Evolv stock declined roughly 40%, from $4.10 per share on October 24, 2024, to $2.47 per share on October 25, 2024, on unusually high trading volume.

If you purchased Evolv securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

About Lowey Dannenberg

Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.