Second lawsuit accuses Evolution of securities fraud


Pomerantz LLP has announced that a class action lawsuit has been filed against Evolution AB.

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

Analyst Alpha Generation Limited released a report on Evolution to certain institutional investors.  According to subsequent media coverage, the Report stated that (a significant portion of Evolution’s revenue “could be at risk due to future regulatory clampdowns,” and 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 January 27, 2022.  

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.