Evolv Technologies Holdings, Inc. (EVLV) Securities Fraud Class Action

Embattled weapons scanner Evolv and its senior executives were recently sued by investors alleging they violated the U.S. securities laws by falsely touting its multimillion-dollar weapons detectors’ use of artificial intelligence technology. With this new federal securities class action, Evolv now faces battles on both the shareholder and regulatory fronts.

The securities class action complaint alleges that Evolv misrepresented and concealed that: (1) it materially overstated the efficacy of its products; (2) the lack of effectiveness of its products regarding detection of knives and guns led to an increased risk of undetected weapons entering schools and other locations; and (3) the company deceived the general public, customers, and investors regarding the effectiveness of its products.

Investors began to learn the truth on Feb. 19, 2024, when Evolv disclosed that the SEC has opened a “non-public, fact-finding inquiry” into the company. News of the SEC investigation caused Evolv shares to drop 19% in one trading day.

The SEC investigation followed a separate probe initiated by the U.S. Federal Trade Commission over allegations that Evolv uses deceptive marketing practices.

In response to increasing media and investor scrutiny, Evolv announced on Feb. 20, 2024 that “Metix NDT Ltd, commissioned by Evolv, tested and validated Evolv Expressâ against the NPSA’s [the UK Government’s National Protective Security Authority] Discriminative Metal Detection Standards.”

But on Mar. 13, 2024, BBC published a blistering report entitled “AI weapons scanner Evolv backtracks on UK testing claims.” BBC observed that Evolv had said that its AI weapons scanner had been tested by the NPSA but, BBC reported that “NPSA does not do this type of testing.”

And, in contrast to Evolv’s Feb. 20, 2024 claim that Metix tested and validated Evolv Expressâ, Metix reportedly informed BBC that it was “not correct to say we ‘validated’ the system”. In response to this news, the price of Evolv shares fell again.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the EVLV securities class-action case about?

We are investigating whether Evolv may have deceived investors about the capabilities and effectiveness of Evolv’s technology.

WHAT SHOULD I DO?

I worked at EVLV. What should I do?

If you were an employee of EVLV, you may have valuable information that could be relevant to the lawsuit. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICPATE?

Am I affected? What do I need to do to participate?

If you were an investor in EVLV, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any EVLV investor participate?

In most class-action cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This class-action only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.