.png)
Investors who purchased or otherwise acquired publicly traded common stock of Evolv Technologies Holdings Inc., formerly NewHold Investment Corp., between June 28, 2021, and Oct. 25, 2024, or acquired Evolv common stock pursuant to the company's registration statement may be eligible to claim a cash payment from a class action settlement.
Evolv Technologies Holdings agreed to pay $15 million to settle a securities class action lawsuit alleging it and certain officers and directors made materially false and misleading statements about the effectiveness of its flagship product, Evolv Express, the company's use of extra-contractual terms and conditions in certain arrangements with customers and channel partners, its financial metrics and its compliance with generally accepted accounting principles.
Who can file a claim?
The settlement includes all persons and entities who purchased or otherwise acquired the publicly traded common stock of Evolv Technologies Holdings Inc., formerly known as NewHold Investment Corp., between June 28, 2021, and Oct. 25, 2024, both dates inclusive, or purchased or otherwise acquired Evolv common stock pursuant to Evolv's Registration Statement, and suffered damages as a result.
Additional details
- Both individuals and entities can be class members.
- Eligible shares include common stock that traded under the ticker symbol NHIC from June 28, 2021, through July 16, 2021, and under the ticker symbol EVLV from July 19, 2021, through Oct. 25, 2024.
- The settlement covers NewHold Investment Corp. units (ticker symbol NHICU) purchased from June 28, 2021, through July 16, 2021, solely with respect to the common stock component of those units.
- The settlement also covers Evolv Technologies securities that the company converted into Evolv common stock as part of the July 2021 business combination.
- Each separate legal entity must submit its own claim form, and a single entity should include all of its accounts on one claim form.
- Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and must provide proof of their authority.
- ERISA plan administrators are responsible for and may file a claim on behalf of an employee retirement plan's transactions.
How much can class members get?
The total settlement fund is $15,000,000. The amount each class member will receive depends on several factors:
- The number of valid claims submitted
- The number of shares purchased or acquired during the class period
- The timing of each purchase, acquisition and sale
- The total recognized claims of all claimants
The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:
- The estimated average recovery is $0.14 per eligible share of Evolv common stock before deductions for taxes, notice and administration costs, and attorneys' fees and expenses. After estimated deductions of $0.09 per share, the net average recovery is approximately $0.05 per share.
- Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
- The settlement administrator will calculate each class member's recognized loss based on when they purchased and sold their shares, the estimated artificial inflation in Evolv's stock price at those times (Page 11 of the class notice) and the formulas in the plan of allocation:
- Class members must have purchased shares during the class period and held them through the opening of trading on at least one corrective disclosure date (May 23, 2023, Oct. 12, 2023, Feb. 20, 2024, March 13, 2024, or Oct. 25, 2024) to have a recognized loss on the Exchange Act claims.
- For shares sold before May 23, 2023, the recognized loss is zero.
- For shares sold from May 23, 2023, through Oct. 24, 2024, the recognized loss is the lesser of the artificial inflation on the purchase date minus the inflation on the sale date or the purchase price minus the sale price.
- For shares sold from Oct. 25, 2024, through Jan. 22, 2025, the recognized loss is the least of the inflation on the purchase date minus the inflation on the sale date, the purchase price minus the sale price or the purchase price minus the 90-day lookback value on the date of sale (pages 12-13 of the class notice).
- For shares held as of the close of trading on Jan. 22, 2025, the recognized loss is the lesser of the inflation on the purchase date or the purchase price minus $3.31 (the average closing price during the 90-day lookback period).
- For shares issued in the business combination in exchange for Evolv Technologies securities, the purchase price is $10.50 per share.
- These shares are also eligible under the Securities Act claims:
- For shares sold before Nov. 20, 2024, the recognized loss is the purchase price (up to $10.50) minus the sale price
- For shares held as of the opening of trading on Nov. 20, 2024, it is the purchase price (up to $10.50) minus $2.62.
- For shares eligible under both the Exchange Act and Securities Act claims, the recognized loss is the greater of the two amounts.
- The settlement administrator will match purchases and sales on a first-in, first-out basis and set any negative recognized loss to zero.
- Class members whose payment would calculate to less than $10 will not receive a payout.
How to claim an Evolv securities class action settlement payment
Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Aug. 12, 2026.
Settlement administrator's mailing address: Evolv Tech. Holdings Securities Litigation, c/o Epiq, P.O. Box 5598, Portland, OR 97228-5598
Proof or documentation required to submit a claim
All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide holding, purchase and sale information, including:
- Number of Evolv common shares held as of the opening of trading on June 28, 2021
- Trade dates for purchases and sales from June 28, 2021, through Jan. 22, 2025
- Number of shares purchased, acquired or sold and the total purchase, sale or acquisition price
- Number of Evolv common shares held as of the close of trading on Jan. 22, 2025
Class members must also submit documentation supporting their transactions and holdings in Evolv securities. Acceptable proof includes:
- Brokerage confirmation slips
- Monthly brokerage account statements
- Authorized statements from a broker containing the transactional and holding information found in a confirmation slip or account statement
Payout options
- Physical check
$15 million settlement fund
The $15,000,000 settlement fund includes:
- Settlement administration costs: To be determined
- Attorneys' fees: Up to $5,000,000
- Attorneys' expenses: Up to $190,000
- Payments to eligible class members: Remainder of the fund
Important dates
- Deadline to file a claim: Aug. 12, 2026
- Opt-out deadline: Sept. 3, 2026
- Fairness hearing: Sept. 24, 2026
When is the Evolv securities class action settlement payout date?
The settlement administrator will issue payments after it completes claim processing and the court resolves any appeals and grants final approval to the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged Evolv Technologies Holdings and certain officers and directors violated federal securities laws by making false and misleading statements about the effectiveness of the company's flagship product, Evolv Express, the company's use of extra-contractual terms and conditions in certain arrangements with customers and channel partners, its financial metrics and its compliance with generally accepted accounting principles. The plaintiffs claimed these statements artificially inflated the price of Evolv's publicly traded common stock, which then declined when the company revealed the truth.
The defendants denied all allegations of wrongdoing but agreed to settle to avoid the uncertainty, burden and expense of continued litigation.
.webp)
.webp)
.webp)
.webp)
.webp)
.webp)
.webp)
.svg)