Pomerantz, a law firm, announced the filing of a class action lawsuit against Evolution. They allege securities fraud. The latter is a live dealer giant.
The lawsuit accuses Evolution of engaging in securities fraud or other unlawful business practices. The motion deadline is set for March 25. Pomerantz is looking to establish whether there was any wrongdoing from Evolution during the class period of February 14, 2019 to October 25, 2023.
During the class period, the lawsuit has listed many incidents that occurred. It had an impact on Evolution’s share prices.
These include a report by Analyst Generation Limited in January 2022. Specific investors had access to it. The report outlined two key allegations according to resulting media coverage. First, that a portion of Evolution’s revenue could be at risk due to future regulatory clampdowns. Second is that Evolution had been exposed to revenues from what they believe to be illegal gambling activities.
Evolution’s ADS or American Depository Shares dropped by 14.68% across the following three trading sessions after the report’s release.
Pomerantz also noted that Evolution’s Quarter 3 results and subsequent earnings call in October of last year highlighted delays to the opening of new studios and stagnation in revenues for some sectors. Evolution’s ADS price fell by 7.61% in response to the news.
Evolution has not yet published anything about the accusations.
In January, Federman & Sherwood filed another lawsuit against Evolution in the United States District Court for the Eastern District of Pennsylvania. The suit is accusing the company of deceiving investors in relation to its growth trajectory and compliance.
The suit stretches over the same class period as Pomerantz’s alleging Evolution made lies or misleading statements regarding to its growth potential, customer compliance, the company’s compliance, and the effect of non-compliance on revenue.