Evolv Technologies (EVLV) CFO Now Out After CEO Terminated And After Admitting To Improper Revenue Recognition - Hagens Berman

San Francisco, California--(Newsfile Corp. - November 29, 2024) - On Nov. 21, 2024, Evolv Technologies Holdings (NASDAQ: EVLV) announced that its Chief Financial Officer Mark Donohue resigned and that he will not receive any severance payments or benefits in connection with his departure.

This news follows the company's Nov. 13, 2024 disclosure that it would not timely file its quarterly report with the SEC because of its pending investigations into the company's sales practices. More specifically, the company said that "certain sales, including sales to one of its largest channel partners, were subject to extra-contractual terms and conditions, some of which were not shared with the Company's accounting personnel, and that certain Company personnel engaged in misconduct in connection with those transactions."

Evolv further said that "among other things, revenue was prematurely or incorrectly recognized in connection with financial statements prepared for the periods between the second quarter of 2022 and the second quarter of 2024[]" and that "these misstatements are material[.]"

In the most recent Nov. 21, 2024 disclosure, the company revealed with more clarity that it "found that certain accounting personnel were aware of indications of these extra-contractual terms and conditions during the affected periods, and that related allegations were raised internally in July 2024 and known to senior finance and accounting personnel[.]"

Evolv is already the subject of a class action lawsuit brought by investors alleging securities fraud.

Hagens Berman urges investors in Evolv who suffered substantial losses to submit your losses now.

Class Period: Aug. 19, 2022 - Oct. 30, 2024
Lead Plaintiff Deadline: Dec. 31, 2024
Visit: www.hbsslaw.com/investor-fraud/evlv
Contact the Firm Now: [e-mail]
844-916-0895

Evolv Technologies Holdings, Inc. Securities Class Action (EVLV):

The complaint alleges that Evolv's financial statements for the period between the second quarter of 2022 and the second quarter of 2024 contained material misrepresentations and omissions related to the company's revenue recognition and other financial metrics.

On October 25, 2024, Evolv issued a press release acknowledging material weaknesses in its internal controls over financial reporting and disclosing that certain sales, particularly to a major channel partner, were subject to undisclosed terms and conditions. The company also revealed that certain employees engaged in misconduct related to these transactions. Following this announcement, Evolv's stock price plummeted approximately 40%.