Sued: Shareholder Lawsuit Alleges Fraud By Evolv And Its Executives
Evolv and its executives are being sued by shareholders, alleging a "fraudulent scheme" by the company and its investors.
Evolv faces various legal risks:
- The FTC is investigating Evolv.
- The SEC is investigating Evolv.
- A student is suing Evolv after being stabbed at a school using an Evolv system. The integrator blames the student and Evolv.
- A new report raises the possibility of public schools suing Evolv.
In this report, we examine these shareholder suits, what they claim, how IPVM's investigations feature prominently, and how this will impact Evolv.
Complaint ******* "********** ******" ** *****
** ***** **, ****, *** ***** Law ********* * ***** ****** ******* ******* Evolv** ************* ******* ***** ** ****** of ************, ********** * ***** ** jury.
** **** ***** **** ********** ** Evolv *** ******* - *** ********* ****** **** ****** ****- ** ********** **********:
- ***** ******- ***** ***
- **** *******- ***** ***
- ***** ********- ***** ***** ****** *** ******* Co-Chairman
- **** *******- ******* *** (******)
- ***** *****- ***** *** (******)
*** **-**** ***************** ******** ********** ** ***** *** its ********** **** ** ******* **** later ***** ** ** ***** ** misleading, **** ********* ********* *** ****** Evolv's ***** ***** "************ *** ******* inflated."
************, *** ********* ******* *** ******.
***** #*: ********** ** ******* **(*)/**** 10b-5
**** ***** ******* **** ***** *** its ********** ********* * "********** ******" upon *********, **** ************ **** ***-*. ******* **** ***** ******** ******* not **** **** ****************** ** ******** facts ****** ** ** ************ ****** them ****** *** **** "***** ** scienter," **** **, **** *****/********** ************* or ********* ********* **********.
*** ********* *******:
***** ********** ** ****** ** ***** receipt ** *********** ********** *** **** facts ** *****, ***** ******* ****, and/or ******* ***/** ************ ** *****’* allegedly ********** ********** **********, ***/** ***** associations **** *** ******* ***** **** them ***** ** ************ *********** *********** concerning *****, ************ ** ***fraudulent ****** ******* herein. [emphasis added]
***** #*: ********** ** ******* **(*)
**** ***** ** ******* *****'* ********** individually ************ **(*) ** *** ********** ******** Act, ***** ******* ********* *** *** violations - ** **** ****, *** Rule ***-* ********* ***** - ** a *******'* "*********** *******."
******* **(*) *** ****** ** "***** and ******* *********" *** ******* **********, meaning **** *** ** *********** *** the ****** **** ****** ** *** violations, *** **** *** ******* ** which ***** ******* *** ******** ************.
**** ** ** *** ********* ** proven, ********** *** ******** **** ***** if **** **** **** ***** ** good *****. *** ********* **** *** to **** *********; *** ********* ******* they **** "***** ** ** ********** disregarded *** **** **** *** ***** and ********** ********** **** ***** ******" and "********* ***** ***** *** ********* to ***** ***** ** ****** ** the ******** ****."
Six **** ******** *****
****** ** ***** ** ***** ********** the ****, *** ***** ***** **** announced ****** ******** ** ****** ** investors (***** ** **** ************ *****):
- ****** ***** ******
- *********-********
- ****** *******
- ****** & ******
- ***** *********
- ******* ****** ****** & ****
*** ************* **** ****** ********* ****** against *****, *** *** ********** *** not *** ******** *********. ******** **** are *******, * ***** ***** ****** one ** **** ***** **** ** believes **** **** ********* *** ***** to *******.
*********, ******** ******** ***** ***** ******* after * ***** *** **** ***** law ***** *********** ***********, ***** ***** own **********, *** ******* **** *** litigation.
Investor ****** ******* **** ***** **********, ****/*** ******** *****
*** **** ********** ****** ****** ** Evolv *** *** ********** ******* ** be ***** ** **********, **** ******* ******'* **** **** ************* ***** *** "******* *** ******* learning ********** ***all *** ****, *** *** *****, *** *** *** ***** ******** ****** in the world." [emphasis added]
* ******* ****** "*** ***** ****** to ******" ******* ******* ******** ** which ********* ******** ******, *********** ********* to ****'* ************** ** *****, ********* with*** ****** **** *** ***** *****'* **** *******.
*** ****** ****** ****, ******** ** Evolv's **********, *** **** ******* *** not "***** ***********," ****** **** **** for *** *********** ****** ** ***** executives, *** ****** ********** ** ********* knives *** *****-******* ******* **** ***** removed **** *** ****** *******.
*** **** ******* **** ***** **** and *** *** ********, *****'* ***** fell ** *.**%. ****** ********** *** *************** *** **** ***** ***** ******* ********* * ***** **** ***** *** not ******, *****'* ***** **** *.**%.
** ******* **, ****,***** ********* *** ****** "********* ***********" ***** *** "********* practices," ******* *** ***** ** **** 13.33%. *** ********* ***** ** **** article ******** ***** **** ***** -*** ** ******* ***** ******* ** Not ******** ***********- ***** ** ********* ** * further *.**% *******.
** ******** **, ****, ***** ******** investors** *** ***** *** *************, ******* * **.**% ******* ** its ***** *****. *** *******, ** March **, ****, ******* *** ******** *****'* ******* ******* ** *** ** **********, the ***** **** * ******* *.**%.
** *****, **** ** ********* ** times ** *** *********.
IPVM ** *************
**** ** *** ************* ** **** or *** ***** ******* ******* ** about *****, *** **** *** **** employees ************ **** ***** *** ***** (to *** **** ** *** ********* after ******** **** **** **** ******* who ********* ****** ** *****).
Next ***** *** *** ***** ******
* ***** **** *** ******* *** suit ** * ***** ******, ******** any ******** ******* - ***** *** purchased ***** ****** *** ******** ****** - ** *** ** ** *** simply.
**** ******** ******* **** ****** ********** with ******* ****** ***** **** ********* their ****** ************ ** *********** *** that *** ************** ******* ******* * class ************* **** "****** *** **********" protect *** ********* ** *** *****, per**** ** ** *** ******* ***** of ***** *********:
** ***** **** **** *** *** a ***** *************, ***** *** **** several ******, ********* ** *** ********** of *** ****. ** *******, ******** can **** ******* ***** ** ******* unless *******, ** ********** ******* ***** like ***** *******.
Implications *** *****
*** ********* **** *** ******* *** amount ** ******* ****** **** *****, which **** ****** ** *** ****** of ****** ************ *** *********, ** well ** *** ***** ***** ** damages (********, ***** ****, ***.). ** the ***** ******** ** ******* ***** executives ******* *** ********* ****** *** damages, **** ***** ** ****** ** compensate *** ********** ************.
*** ******* **** *** ***** ** that *** **** ******* ******* *** reputation. ** *********** **** *** *** and *** ************** *** *** ******** suit ******* ***** **** *** ***** stabbing, *** ***** ***** ** *** company *** ***********. ***********, ** **** the ***** ****, ** **** **** proceeds ** *** ********* *****, ***** may ** ****** ** **** **** documents **** ******** **** *** ****** marketing ** ********* ******* ****** ** the *******, ******* ************ ***** *** reputational *****.
*** ** *** **********, ***** *****, left *** **** ** *** ***** only *** ****** *** **** *** include ***** ** *** ******** *******. I ****** * ********** ********* **** here:*****'* ****** *** ***** ***** ** Linkedin, *** ***** **** ** ************