According to the Complaint, Defendants failed to disclose to investors 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; and (3) Evolv deceived the general public, its customers, and its investors regarding the effectiveness of its products.

On February 20, 2024, before the market opened, Evolv stated in a Form 8-K filed with the SEC that “on Friday, February 16, 2024 the SEC notified the Company it was initiating an investigation that was described as a confidential ‘non-public, fact finding inquiry.’” On this news, which is alleged to be related to the Evolv’s technology, the price of Evolv stock fell by $0.82 per share, or 15.67%, to close at $4.41 on February 20, 2024.

On March 13, 2024, the BBC released an article entitled “AI weapons scanner backtracks on UK testing claims” (the “Article”).  Among other things, the Article stated that “[t]he company had said that its AI weapons scanner had been tested by the UK Government’s National Protective Security Authority (NPSA)[.] . . . On 20 February the company put out a press release, including a claim that the NPSA was one of a number of testers who had ‘concluded that the Evolv Express solution was highly effective at detecting firearms and many other types of weapons’.  But BBC News can reveal the NPSA does not do this type of testing.”

On this news, Evolv’s stock price declined by $0.13 per share, or over 3%, to close at $3.57 per share on March 13, 2024.

If you wish to serve as lead plaintiff, you must move the Court no later than May 24, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

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