Evolution AB (publ) (OTC: EVVTY)

This lawsuit is for anyone who acquired securities in Evolution AB (publ) (OTC: EVVTY) from February 14, 2019 through October 25, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that the Company only provided products and services to licensed online casino operators when, in fact, it provided products and services to unlicensed operators, subjecting the Company to litigation and enhanced regulatory scrutiny.

On January 24, 2022, Analyst Alpha Generation Limited released an analytical report stating that a significant portion of Evolutions revenue “could be at risk due to future regulatory clampdowns” and that Evolution was “exposed to revenues from . . . illegal gambling activities.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on April 25, 2022, after market hours, the Australian gambling regulator announced that it had requested that Australian internet service providers block six online gambling sites, five of which were customers of Evolution, for engaging in illegal gambling. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on May 4, 2022, reports revealed that the Swedish Administrative Court had upheld most of the record Swedish fines of approximately $17.8 million that had been imposed on brands operated by customers of Evolution in relation to breaches of Swedish online gambling regulations. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on May 7, 2022, the press reported that industry participants had lobbied the UK government against an overhaul of gambling laws in the UK, revealing the potential threat of a UK gambling law overhaul. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on April 27, 2023, Evolution released its first quarter 2023 financial results, revealing that its revenue from its RNG segment had experiences no growth, while the North American segment had experienced low growth. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on October 26, 2023, Evolution released its third quarter 2023 financial results, disclosing that the Company was facing delays in opening new studios and revealing, once more, no growth in revenue from either the RNG or North American segment. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Evolution AB (publ) (OTC: EVVTY) from February 14, 2019 through October 25, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.