Investors Say Security Tech Firm Evolv Violated Securities Law

A proposed class of investors say weapons screening company Evolv Technologies Holdings Inc. is liable under federal securities law for the internal misconduct plaguing its past two years of financial statements.

The security technology firm voluntarily disclosed Oct. 25 that it will redo two years of financial statements after conducting an internal investigation into its sales and revenue accounting practices. Evolv said “certain company personnel” engaged in misconduct regarding sales to some of the company’s largest partners that weren’t shared with its accounting personnel or external auditors.

Investor Douglas Buchan said Evolv is liable under the Securities Exchange Act for ...