Evolution AB (EVVTY; EVGGF)
Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Evolution AB (“Evolution” or “the Company”) (OTCMKTS: EVVTY; EVGGF). Investors who purchased Evolution securities are encouraged to obtain additional information and assist the investigation.
The investigation concerns whether Evolution has violated federal securities laws.
Investigation Details:
On January 24, 2022, Analyst Alpha Generation Limited released a report on Evolution (the “Report”) to certain institutional investors. According to subsequent media coverage, the Report stated that (1) a significant portion of Evolution’s revenue “could be at risk due to future regulatory clampdowns,” and (2) 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.
On April 26, 2022 (that is, on April 25, 2022 in the United States), Australia’s 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 were direct or indirect customers of Evolution’s, alleging that the sites were engaged in illegal gambling. On this news, Evolution’s ADS price fell $6.02 per ADS, or 6.22%, over the following two trading sessions, to close at $96.73 per ADS on April 27, 2022.
On May 4, 2022, industry press reported that the Swedish Administrative Court had upheld most of the record Swedish fines of 175 million Swedish Krona (approximately $17.8 million) that had been imposed on brands operated by ComeOn Group, a subsidiary of Cherry AB (publ), a customer of Evolution’s, in relation to breaches of Swedish online gambling regulations. On this news, Evolution’s ADS price fell $12.34 per ADS, or 10.88%, to close at $101.09 per ADS on May 5, 2022.
On May 7, 2022, media outlets reported that industry participants had lobbied the UK government against an overhaul of gambling laws in the UK. On this news, Evolution’s ADS price fell $14.84 per ADS, or 14.54%, over the following three trading sessions, to close at $87.25 per ADS on May 11, 2022.
On April 27, 2023, Evolution released its financial and operating results for the first quarter of 2023. Among other items, the Company disclosed that Evolution’s revenue from the RNG segment of its business did not grow, and that its North American business segment had experienced a low growth rate. On this news, Evolution’s ADS price fell $11.24 per ADS, or 8.23%, over the following four trading sessions, to close at $125.26 per ADS on May 2, 2023.
Finally, on October 26, 2023, 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. On this news, Evolution’s ADS price fell $7.15 per ADS, or 7.61%, over the following two trading sessions, to close at $86.80 per ADS on October 27, 2023.
What’s Next?
If you are aware of any facts relating to this investigation or purchased Evolution securities, you can assist this investigation. You can also contact Peretz Bronstein or his law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
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Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Nathanson