News

Evolution facing class action lawsuit for alleged securities fraud

3?March?2024


(PRESS RELEASE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Evolution AB. Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

The class action concerns whether Evolution and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

You have until 25 March 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Evolution securities during the Class Period.

On 24 January 2022, Analyst Alpha Generation Limited released a report on Evolution (the "Report") to certain institutional investors. According to subsequent media coverage, the Report stated that (i) a significant portion of Evolution's revenue "could be at risk due to future regulatory clampdowns," and (ii) Evolution was "exposed to revenues from what we [the authors of the Report] believe to be illegal gambling activities."

On this news, Evolution's American Depositary Share ("ADS") price fell $19.78 per ADS, or 14.68%, over the following three trading sessions, to close at $115.00 per ADS on 27 January 2022.

On 26 April 2022 (that is, on 25 April 2022 in the United States), Australia's gambling regulator announced that it had requested that Australian internet service provides block six online gambling sites, the operators of at least five of which were direct or indirect customers of Evolution's, alleging that the sites were engaged in illegal gambling.

On this news, Evolution's ADS price fell $6.02 per ADS, or 6.22%, over the following two trading sessions, to close at $96.73 per ADS on 27 April 2022.

On 4 May 2022, industry press reported that the Swedish Administrative Court had upheld most of the record Swedish fines of 175 million Swedish Krona (approximately $17.8 million) that had been imposed on brands operated by ComeOn Group, a subsidiary of Cherry AB (publ), a customer of Evolution's, in relation to breaches of Swedish online gambling regulations.

On this news, Evolution's ADS price fell $12.34 per ADS, or 10.88%, to close at $101.09 per ADS on 5 May 2022.

On 7 May 2022, media outlets reported that industry participants had lobbied the UK government against an overhaul of gambling laws in the U.K.

On this news, Evolution's ADS price fell $14.84 per ADS, or 14.54%, over the following three trading sessions, to close at $87.25 per ADS on 11 May 2022.

On 27 April 2023, Evolution released its financial and operating results for the first quarter of 2023. Among other items, the Company disclosed that Evolution's revenue from the RNG segment of its business did not grow, and that its North American business segment had experienced a low growth rate.

On this news, Evolution's ADS price fell $11.24 per ADS, or 8.23%, over the following four trading sessions, to close at $125.26 per ADS on 2 May 2023.

Finally, on 26 October 2023, Evolution released its financial and operating results for the third quarter of 2023 and held an analyst call to discuss the results. In its quarterly report and on the analyst call, Evolution disclosed that the Company faced delays in opening new studios and that revenues for its RNG and North American business segments did not grow.

On this news, Evolution's ADS price fell $7.15 per ADS, or 7.61%, over the following two trading sessions, to close at $86.80 per ADS on 27 October 2023.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct.