Evolv Technologies (EVLV) Hit with Securities Class Action After Disclosing SEC Investigation, BBC Report Disputing Company’s Claims - Hagens Berman

SAN FRANCISCO, April 01, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Evolv Technologies Holdings, Inc. (NASDAQ: EVLV) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact the firm’s attorneys.

Class Period: June 28, 2021 – Mar. 13, 2024
Lead Plaintiff Deadline: May 24, 2024
Visit: www.hbsslaw.com/investor-fraud/EVLV
Contact An Attorney Now: [email protected]
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Evolv Technologies Holdings, Inc. (NASDAQ: 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 Express 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 Express, 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.

“We are investigating whether Evolv may have deceived investors about the capabilities and effectiveness of Evolv’s technology,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.

If you invested in Evolv Technologies and have substantial losses, or have knowledge that may assist the firm’s investigation, contact Hagens Berman now »

If you’d like more information and answers to frequently asked questions about the Evolv Technologies case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Evolv Technologies 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 [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

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Contact:
Reed Kathrein, 844-916-0895