Robbins LLP is Investigating Allegations that Evolv Technologies Holdings, Inc. (EVLV) Misled Investors Regarding Revenue Recognition

Robbins LLP announces that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Evolv Technologies Holdings, Inc. (NASDAQ: EVLV) securities between August 19, 2022 and October 30, 2024. Evolv is a security technology company that utilizes AI-based screening designed to help create safer experiences.

The Allegations

According to the complaint, 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 that are a function of revenue.  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 “expects to report one or more additional material weaknesses in internal control over financial reporting,” was delaying filing its upcoming quarterly report for the third quarter of 2024, and that it has “self-reported these issues” to the Division of Enforcement of the SEC. 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.

What Now: You may be eligible to participate in the class action against Evolv Technologies Holdings, Inc. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by December 31, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.