Source: World Casino News

Evolution Embroiled in Legal Battle Over Compliance and Investor Misrepresentation

A gaming company, Evolution is facing a class action lawsuit led by Federman & Sherwood, covering the period February 2019 to October 2023. The suit accuses Evolution of misleading investors about growth prospects and regulatory compliance, particularly in the US market.

Regulatory hurdles and accusations of operating in black-listed countries have led to share price drops, notably after a January 2022 report highlighted revenue risks. The Australian regulator's actions in April 2022, blocking unlicensed sites, including Evolution customers, and imposing a hefty fine on ComeOne Group, also affected Evolution's market performance. Recent financial disclosures reveal stagnant North American growth of the company, worsening share price declines.

Federman & Sherwood's lawsuit targets CEO Martin Carlesund and CFO Jacob Kaplan, alleging Securities Exchange Act violations, the company's multiple compliance challenges and their impact on its financial standing and investor trust.

26 January 2024, 14:09

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