NEW YORK, March 26, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of those who acquired Evolv Technologies Holdings, Inc. (formerly known as NewHold Investment Corp.) (“Evolv” or the “Company”) (NASDAQ: EVLV) securities during the period of June 28, 2021 through March 13, 2024, inclusive (“the Class Period”). Investors have until May 24, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On November 2, 2022, the security research group IPVM released a report revealing that Evolv pressured National Center for Spectator Sports Safety and Security (NCS4) to edit and obscure the results from NCS4’s testing report that conflicted with Evolv’s claims that its technology could detect tactical knives and guns. NCS4’s internal report documented several failures of Evolv’s technology in detecting certain weapons such as micro-compact pistols and knives. On this news, the price of Evolv shares declined by $0.08 per share, or approximately 2.73%, from $2.93 per share on November 1, 2022 to close at $2.85 on November 2, 2022. The next day, shares fell a further $0.16, or approximately 5.6%, to close at $2.69.
On May 23, 2023, BBC News published an article that 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 shares declined by $0.45, or approximately 7.56%, from $5.95 on May 22, 2023 to close at $5.50 on May 23, 2023.
On October 12, 2023, Evolv filed with the SEC a Current Report on Form 8-K, in which the Company announced that it had received an information request from the U.S. Federal Trade Commission. On this news, the price of Evolv stock declined by $0.58 per share, or approximately 13.33%, to close at $3.77 on October 12, 2023.
On February 20, 2024, Evolv filed with the SEC a current report on Form 8-K, attached to a press release that stated that the SEC was “initiating an investigation that was described as a confidential, ‘non-public, fact-finding inquiry.’” On this news, the price of Evolv shares declined by $0.82 per share, or approximately 15.67%, to close at $4.41 on February 20, 2024.
Then, on March 13, 2024, the BBC released an article reporting that Evolv had backtracked its claims that its AI weapons scanner had been tested by the UK Government's National Protective Security Authority. On this news, the price of Evolv shares declined by $0.13 per share, or approximately 3.51%, to close at $3.57 on March 13, 2024.
The lawsuit alleges that throughout the Class Period Evolv: (1) overstated the efficacy of its products; and (2) concealed the lack of effectiveness of Evolv’s products with regard to detecting knives and guns that led to an increased risk of undetected weapons entering locations such as schools.
If you purchased or otherwise acquired Evolv securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
