Federman & Sherwood files class action lawsuit against Evolution AB

Federman & Sherwood is a respected law firm with years of experience and a team of highly skilled experts. Throughout the years, the company has handled more than 60 class action lawsuits and earlier this week, it announced a new class action lawsuit against Evolution AB, the leading business-to-business solutions provider, powering online gambling operators across the globe.

The legal action represents the first securities class action lawsuit filed against the gaming company. Federman & Sherwood filed the legal claim with the US District Court for Eastern District of Pennsylvania listing Evolution AB, Evolution's CEO, Martin Carlesund, and the company's Chief Financial Officer, Jacob Kaplan, as defendants, a statement reveals.

The new class action lawsuit alleges that the defendants made misleading and/or false statements regarding Evolution's business, its compliance with laws and its customers. Additionally, the recent class action lawsuit alleges that Evolution misled or presented false circumstances regarding its growth strategies, potential growth and the effects of compliance on its revenues.

Federman & Sherwood's legal action against Evolution describes the "Class Period" between February 14, 2019, and October 25, 2023. The law firm claims that during that time, the company "made materially false and/or misleading statements." Those actions resulted in a significant change in Evolution's share prices, and this includes its American Depository Shares (ADSs), the lawsuit claimed.

Most recently, back on October 26, 2023, Evolution announced its financial results for the third quarter of 2023. At the time, the company admitted slow growth for its North American and RNG business along with delays in the opening of new studios. Consequently, Evolution's ADS price decreased to $86.80 per ADS as of October 27, 2023.

Before that, on April 27, 2023, the company released its Q1 financial report, pointing to slow growth of its RNG business and North American operations. This announcement also impacted its ADS price which decreased by 8.23% to close at $125.26 per ADS on May 2, 2023.

In January 2022, a report released by Analyst Alpha Generation Limited assessed Evolution's operations. At the time, the report claimed that the company was "exposed to revenues from what we (the authors) believe to be illegal gambling activities" and that its revenue was "at risk due to future regulatory clampdowns." Not unexpectedly, this action impacted Evolution's ADS which fell 14.68% to $115.00 per ADS as of January 27, 2022.

Ultimately, Federman & Sherwood's lawsuit against Evolution alleges breaches to Section 20(a) of the Securities Exchange Act as well as violations of Section 10(b) of the Securities Exchange Act and Rules 10b-5 promulgated thereunder. "Plaintiffs seek to recover damages on behalf of all Evolution AB investors who purchased securities, including ADSs, during the Class Period," explained the law firm.

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