Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Evolution AB (publ) (“Evolution” or the “Company”) (OTC: EVVTY) American Depositary Shares (“ADSs”) between February 14, 2019 and October 25, 2023, inclusive (the “Class Period”). Evolution investors have until March 25, 2024 to file a lead plaintiff motion.

Investors suffering losses on their Evolution investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

On January 24, 2022, Analyst Alpha Generation Limited released an analytical report stating that a significant portion of Evolution’s revenue “could be at risk due to future regulatory clampdowns” and that Evolution was “exposed to revenues from . . . illegal gambling activities.” On this news, Evolution’s stock price fell $19.78, or 14.7%, to close at $115.00 per share on January 27, 2022, thereby injuring investors.

Then, on April 25, 2022, after market hours, the Australian gambling regulator announced that it had requested that Australian internet service providers block six online gambling sites, five of which were customers of Evolution, for engaging in illegal gambling. On this news, Evolution’s stock price fell $6.02, or 6.2%, to close at $90.71 per share on April 26, 2022.

Then, on May 4, 2022, reports revealed that the Swedish Administrative Court had upheld most of the record Swedish fines of approximately $17.8 million that had been imposed on brands operated by customers of Evolution in relation to breaches of Swedish online gambling regulations. On this news, Evolution’s stock price fell $12.34, or 10.9%, to close at $101.09 per share on May 5, 2022.

Then, on May 7, 2022, the press reported that industry participants had lobbied the UK government against an overhaul of gambling laws in the UK, revealing the potential threat of a UK gambling law overhaul. On this news, Evolution’s stock price fell $14.84, or 14.5%, over two consecutive trading days, to close at $87.25 per share on May 11, 2022.

Then, on April 27, 2023, Evolution released its first quarter 2023 financial results, revealing that its revenue from its RNG segment had experiences no growth, while the North American segment had experienced low growth. On this news, Evolution’s stock price fell $10.94 over consecutive trading days to close at $125.56 per share on May 2, 2023.

Then, on October 26, 2023, Evolution released its third quarter 2023 financial results, disclosing that the Company was facing delays in opening new studios and revealing, once more, no growth in revenue from either the RNG or North American segment. On this news, Evolution’s stock price fell $7.16, or 7.6%, to close at $86.79 per share on October 27, 2023, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that in “allowing play” from certain jurisdictions, multiple customers of Evolution’s were, or were deemed by regulators to be, unlicensed and/or in breach of the laws of those jurisdictions; (2) that Defendants misrepresented the extent of Evolution’s involvement with regulatorily non-compliant customers; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased Evolution securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

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