Evolution Continues Legal Battle to Unmask Group Behind False Market Claims
Evolution AB continues its legal battle in New Jersey to uncover the identity of individuals who made unsubstantiated claims about the company's operations in 2021. The dispute centers around allegations that Evolution provided services to offshore gaming companies in unregulated markets.
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Calcagni & Kanefsky, a Newark-based law firm, filed a complaint with the New Jersey Division of Gaming Enforcement (DGE) in November 2021, representing an anonymous group. The complaint alleged Evolution was operating in black markets, including sanctioned countries like Iraq, Sudan, and Syria.
The DGE investigated these claims and found no regulatory breaches, clearing Evolution of wrongdoing in February 2024. However, Evolution seeks to identify the group behind these allegations, which caused approximately $10 billion in market capitalization losses.
Key developments in the legal proceedings:
- Judge John Porto initially ruled against Evolution's request for disclosure in August
- Evolution has appealed and filed new legal documents last week
- The company argues anonymous wrongdoers shouldn't be able to avoid accountability by working through counsel
- Both parties must submit supplemental briefs by December 9
Evolution's stock price, which traded at $162 before the allegations, currently sits around $90. While the false report contributed to this decline, it's not the sole factor affecting the company's market value.
The anonymous group, represented by a New York City-based PR firm, claims to be a US-based entity but not a direct competitor of Evolution. Their identity remains protected pending the outcome of ongoing legal proceedings.