NEW YORK, April 23, 2024 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Evolv Technologies Holdings, Inc. f/k/a NewHold Investment Corp. (“Evolv” or the “Company”) (NASDAQ: EVLV) and reminds investors of the May 24, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $75,000 In Evolv To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $75,000 investing in Evolv stock or options between June 28, 2021 and March 13, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/EVLV.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Evolv materially overstated the efficacy of its products; (2) the lack of effectiveness of Evolv’s products with regard to detecting knives and guns led to an increased risk of undetected weapons entering locations such as schools; (3) Evolv deceived the general public, its customers, and its investors regarding the effectiveness of its products; and (4) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times. When the true details entered the market, the lawsuit claims that investors suffered damages.
The Evolv class action lawsuit further alleges that on November 2, 2022, IPVM released a report entitled “BBC Exposes Evolv with IPVM Research” which stated that: “A BBC report based on 1,000+ pages of documents obtained by IPVM has exposed security screening manufacturer Evolv for deceptive marketing and colluding with NCS4, a public entity, to hide test results showing failures at weapons screening.” On the same day, the complaint further alleges that BBC released an article entitled “Manchester Arena’s weapon scanning tech questioned.” On this news, the price of Evolv stock fell more than 8% over two trading sessions, according to the complaint.
Then, the Evolv class action lawsuit further alleges that on May 23, 2023 BBC News published an article entitled “AI scanner used in hundreds of US schools misses knives” which stated that “[a] security firm that sells AI weapons scanners to schools is facing fresh questions about its technology after a student was attacked with a knife that the $3.7 [million] system failed to detect.” On this news, the price of Evolv stock fell nearly 8%, according to the complaint.
Thereafter, on October 12, 2023, Evolv disclosed that “the U.S. Federal Trade Commission had requested information about certain aspects of its marketing practices,” the complaint alleges. On this news, the price of Evolv stock fell more than 13%, according to the complaint.
Subsequently, on October 25, 2023, IPVM released an article entitled “Why We Believe Evolv Express Is Not Actually Intelligent” which stated that Evolv Express “struggles to differentiate small knives from cell phones and guns from laptops.” On this news, the price of Evolv stock fell, according to the complaint.
The Evolv class action lawsuit further alleges that on February 20, 2024, Evolv revealed that “on Friday, February 16, 2024 the [U.S. Securities and Exchange Commission] notified [Evolv] it was initiating an investigation that was described as a confidential ‘non-public, fact finding inquiry.'” On this news, the price of Evolv stock fell nearly 16%, according to the complaint.
Finally, on March 13, 2024, the complaint further alleges that the BBC released an article entitled “AI weapons scanner backtracks on UK testing claims” which stated that “Evolv told BBC News it had altered its claims about UK testing to ‘better reflect the process taken.'” On this news, the price of Evolv stock fell, according to the complaint.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Evolv’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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