Game studio and operator Evolution is facing a class-action lawsuit for securities fraud, filed by the law firm Pomerantz. According to Pomerantz, the management of Evolution, including officers and directors, engaged in illegal business practices that led to a drop in the company's shares.
The complaint outlines various incidents between February 14, 2019, and October 25, 2023, that impacted the price of Evolution's securities. This includes the company's third-quarter results and a subsequent earnings report in October 2023, where the organization informed investors about delays in opening new studios due to stagnant revenues. Following the publication, the share price reportedly fell by 7.61%.
Previously, Evolution faced allegations of defrauding investors after regulatory restrictions were imposed for failing to comply with US trade sanctions. The company was accused of providing access to gambling for players from Syria and Iran, but the case was later closed by the New Jersey Division of Gambling Enforcement.