Consumer class action specialists Federman & Sherwood has announced that it has filed a class action lawsuit in the United States District Court for Eastern District of Pennsylvania against Evolution AB (“Evolution”), Martin Carlesund, and Jacob Kaplan.
The Complaint
The complaint, which was filed in court on January 23rd, 2024, alleges from February 14th, 2019 through October 25th, 2023 Evolution made materially false and/or misleading statements regarding the company and the company’s customers’ compliance with governing laws. The suit also claims that the company made misleading statements in relation to its predicted growth and growth strategies.
From January 24the, 2022 to October 26th, 2023, several disclosures revealed Evolution’s true status in relation to compliance, revenue, and growth, which led to a significant change in the value of its share prices. As a result of these changes, the complainants sought legal advice and have now filed a class action suit. The suit claims that Evolution and both Martin Carlesund, and Jacob Kaplan were in breach of Section 10(b) of the Securities Exchange Act and Rules 10b-5 promulgated thereunder, and violations of Section 20(a) of the Securities Exchange Act.
Plaintiffs are seeking to recover damages on behalf of all Evolution investors who purchased securities during the Class Period.
Federman & Sherwood has set a deadline of 26th March, 2024 for investors wishing to join the legal action against Evolution.
Latest in a String of Challenges
Evolution has encountered compliance difficulties in the past, with claims of violating US sanctions and operating in countries prohibited by the US chief among them. In November of 2021 these allegations led to a notable drop in its stock value. An analyst report in January 2022 indicated that a considerable part of Evolution’s earnings might be jeopardized by possible regulatory restrictions.
Then, in April 2022, Australian watchdogs instructed Internet Service Providers to restrict access to unauthorized online betting platforms, including five sites that were clients of Evolution. Again, this negatively affected the company’s stock price. Following this, the Swedish Administrative Court confirmed a substantial penalty on an Evolution client, ComeOn Group, which caused an 11% decrease in Evolution’s stock value.
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.