Investors are being encouraged to submit their losses after Evolv Technologies Holdings, Inc. was recently hit with a securities fraud class action lawsuit, alleging that the company falsely promoted its weapons detectors as utilizing artificial intelligence technology. The lawsuit claims that Evolv misrepresented the efficacy of its products and deceived the public, customers, and investors regarding their effectiveness.
The trouble for Evolv continued when it was revealed that the U.S. Securities and Exchange Commission (SEC) had opened a non-public inquiry into the company, causing its shares to drop by 19% in one trading day. This investigation comes on the heels of a separate probe initiated by the U.S. Federal Trade Commission over allegations of deceptive marketing practices.
In an attempt to address mounting scrutiny, Evolv announced that its AI weapons scanner had been tested and validated by Metix NDT Ltd. against the UK Government’s National Protective Security Authority’s Discriminative Metal Detection Standards. However, a report from the BBC contradicted this claim, stating that the NPSA does not conduct such testing and that Metix did not validate the system.
Reed Kathrein, a partner at Hagens Berman, the law firm leading the investigation, stated that they are looking into whether Evolv may have deceived investors about the capabilities and effectiveness of its technology.
Investors who have suffered substantial losses are urged to submit their losses, while individuals with knowledge that may assist in the investigation are also encouraged to come forward. Whistleblowers who have non-public information regarding Evolv Technologies can potentially benefit from the SEC Whistleblower program, which offers rewards of up to 30% of any successful recovery made by the SEC.
Hagens Berman is a global plaintiffs’ rights litigation law firm known for its focus on corporate accountability. More information about the firm and the investigation into Evolv Technologies can be found on their website.
Evolv Technologies operates in the security technology industry, specifically providing weapons detectors. The company has been hit with a securities fraud class action lawsuit, which alleges that it falsely promoted its detectors as utilizing artificial intelligence technology. This has raised concerns about the efficacy of Evolv’s products and has led to investigations by both the U.S. Securities and Exchange Commission (SEC) and the U.S. Federal Trade Commission (FTC).
The securities fraud lawsuit claims that Evolv misrepresented the capabilities and effectiveness of its technology, deceiving the public, customers, and investors. The impact of these allegations was significant, as Evolv’s shares dropped by 19% in one trading day following the announcement of the SEC inquiry.
In an effort to address the mounting scrutiny, Evolv announced that its AI weapons scanner had been tested and validated by Metix NDT Ltd. against the UK Government’s National Protective Security Authority’s Discriminative Metal Detection Standards. However, a report from the BBC contradicts this claim, stating that the NPSA does not conduct such testing and that Metix did not actually validate the system. This further adds to the concerns about the accuracy of Evolv’s marketing claims.
The law firm leading the investigation, Hagens Berman, is well-known for its focus on corporate accountability. Reed Kathrein, a partner at the firm, stated that they are looking into whether Evolv may have deceived investors about the capabilities and effectiveness of its technology. Investors who have suffered substantial losses are urged to submit their losses, and individuals with any knowledge that may assist in the investigation are encouraged to come forward.
It’s worth noting that whistleblowers who have non-public information regarding Evolv Technologies have the potential to benefit from the SEC Whistleblower program. This program offers rewards of up to 30% of any successful recovery made by the SEC.
For more information about Hagens Berman and the investigation into Evolv Technologies, interested individuals can visit their website at link name.