Evolution AB (publ)
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Pennsylvania on behalf of those who acquired Evolution AB (publ) (“Evolution” or the “Company”) (OTC BB: EVVTY) securities during the period from February 14, 2019 through October 25, 2023, inclusive. Investors have until March 25, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On January 24, 2022, analyst Alpha Generation Limited released the January 2022 Report to certain institutional investors. The release of the January 2022 Report was followed by (i) news of the release circulating on social media and (ii) the publication of press reports on the content of the January 2022 Report. According to press reports, the January 2022 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 January 2022 Report] believe to be illegal gambling activities. On that adverse news, the price of Evolution’s ADSs plummeted, declining first on January 24, 2022, the reported date of the distribution of the report to institutional investors, and falling approximately 15%, or $19.78 per ADS, to close at $115.00 per ADS on January 27, 2022.
On April 26, 2022, Australian time (that is on April 25, 2022 in the United States, after the OTC Market closed), the Australian gambling regulator announced that it had requested that Australian internet service providers block six online gambling sites (the operators of at least five of which (Golden Crown Casino, Sol Casino, PowBet, ExciteWin and Sportaza) were direct or indirect customers of Evolution’s), which the regulator alleged were engaging in illegal gambling. The announcement of the Australian regulatory action revealed that Defendants’ statements made in the 2021 Annual Report, described in paragraph 21, and Defendants’ statement described in paragraph 22, were false, as Evolution did, in fact, provide its products and/or services to multiple customers who the regulator in the substantial market of Australia regarded as operating unlicensed online gambling businesses. On that adverse news, the price of Evolution’s ADSs declined, falling approximately 6%, or $6.02 per ADS, to close at $90.71 per ADS on April 27, 2022 (from a closing price of $96.73 per ADS on April 25, 2022, the trading day immediately preceding the regulator’s announcement).
The complaint alleges that Defendants made public misrepresentations or failed to disclose material facts during the class period that would tend to induce a reasonable investor to misjudge the value of the Company's ADSs, and under these circumstances, all purchasers of the ADSs during the Class Period suffered similar injury through their purchase of ADSs at artificially inflated prices.
On January 24, 2022, analyst Alpha Generation Limited released the January 2022 Report to certain institutional investors. The release of the January 2022 Report was followed by (i) news of the release circulating on social media and (ii) the publication of press reports on the content of the January 2022 Report. According to press reports, the January 2022 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 January 2022 Report] believe to be illegal gambling activities. On that adverse news, the price of Evolution’s ADSs plummeted, declining first on January 24, 2022, the reported date of the distribution of the report to institutional investors, and falling approximately 15%, or $19.78 per ADS, to close at $115.00 per ADS on January 27, 2022.
On April 26, 2022, Australian time (that is on April 25, 2022 in the United States, after the OTC Market closed), the Australian gambling regulator announced that it had requested that Australian internet service providers block six online gambling sites (the operators of at least five of which (Golden Crown Casino, Sol Casino, PowBet, ExciteWin and Sportaza) were direct or indirect customers of Evolution’s), which the regulator alleged were engaging in illegal gambling. The announcement of the Australian regulatory action revealed that Defendants’ statements made in the 2021 Annual Report, described in paragraph 21, and Defendants’ statement described in paragraph 22, were false, as Evolution did, in fact, provide its products and/or services to multiple customers who the regulator in the substantial market of Australia regarded as operating unlicensed online gambling businesses. On that adverse news, the price of Evolution’s ADSs declined, falling approximately 6%, or $6.02 per ADS, to close at $90.71 per ADS on April 27, 2022 (from a closing price of $96.73 per ADS on April 25, 2022, the trading day immediately preceding the regulator’s announcement).
The complaint alleges that Defendants made public misrepresentations or failed to disclose material facts during the class period that would tend to induce a reasonable investor to misjudge the value of the Company's ADSs, and under these circumstances, all purchasers of the ADSs during the Class Period suffered similar injury through their purchase of ADSs at artificially inflated prices.