Evolv Technologies Holdings, Inc.: Potential Shareholder Claims Following Revenue Restatements, CEO Firing, and Other Possible False Statements

Schubert Jonckheer & Kolbe LLP advises Evolv Technologies Holdings, Inc. investors that the firm is investigating potential legal claims relating to recently-announced revenue restatements, the CEO’s firing, and possible false statements about the effectiveness of key company products. Current shareholders are encouraged to contact the firm.

Evolv is a security technology company that makes AI-based weapons scanning systems. At relevant times, the company touted the effectiveness of these products, particularly their purported ability to detect guns and knives. Investigative reporting later exposed the company’s statements as inaccurate. The U.S. Federal Trade Commission and U.S. Securities and Exchange Commission have also opened investigations into the company. 

Additionally, on October 25, 2024, Evolv announced that investors should not rely on the company’s previously issued financial statements from June 2022 onward, which would need to be restated because certain sales transactions and revenues were prematurely recognized. Evolv also revealed that its board of directors was conducting an internal investigation. Evolv reported the matter to the SEC and then terminated its CEO and President Peter George five days later on October 30, 2024. These disclosures resulted in a substantial 47% stock price decline.

Based on these facts, the company has also been sued in securities fraud class action lawsuits. The Schubert firm is investigating potential wrongdoing by Evolv’s officers and directors in connection with these allegations.