Published on: November 19, 2024, 03:05h.
Last updated on: November 19, 2024, 03:14h.
Evolution AB, a leading supplier of live dealer iGaming operations and developer of online casino gaming software, is continuing its legal battle in New Jersey to reveal the identity of a group who falsely accused Evolution of providing services to offshore gaming companies in unregulated markets back in 2021.
Three years ago this month, Calcagni & Kanefsky, a law firm headquartered in Newark, New Jersey that specializes in white-collar crime, filed a complaint with the New Jersey Division of Gaming Enforcement (DGE) alleging that Evolution was conducting business in various black markets, including in countries subject to US sanctions such as Iraq, Sudan, and Syria.
Calcagni & Kanefsky Senior Counsel Ralph Marra told state gaming officials he represented an anonymous group that conducted a covert operation to determine if Evolution was dealing games in black markets. The probe detailed alleged evidence that it was in a lengthy report provided to the DGE.
The DGE’s subsequent probe into the allegations found no regulatory breaches and the Sweden-based iGaming business-to-business company was cleared of wrongdoing in February 2024.
“The New Jersey DGE found no evidence that Evolution sanctioned, promoted, permitted, or otherwise materially benefitted from its content offered by operators in any market that the New Jersey DGE considers a prohibited jurisdiction,” an Evolution statement read.
DGE considered the matter “closed.” Evolution did not, as the group wanted a state court to demand that the attorneys representing the anonymous group disclose who was behind the falsified report.
Casino.org has been in regular communication with a public relations firm claiming to represent the anonymous group. The PR outlet, based in New York City, claims the group is a US-based entity but is not a direct competitor of Evolution. Pressed to identify the anonymous group, the PR representative told Casino.org that is something he “cannot do.”
Legal Battle Update
In August, New Jersey Superior Court Judge John Porto ruled against Evolution’s request for Marra and Calcagni & Kanefsky to make public the group behind the allegations. Evolution appealed the ruling, and last week filed an Argument and Proposed Findings of Fact and Conclusions of Law.
The case questions whether an anonymous individual can spread false claims against a business, causing significant financial losses, and then avoid responsibility by using a law firm to share the false statements. Evolution’s legal team argued against this practice.
The court filing also alleges that the individuals cherry-picked statements from witnesses who were recorded under false pretenses. It further explains that the DGE found no support for the claims against Evolution.
Evolution respectfully requests that the Court order Defendants to reveal the identity of the Anonymous Investigative Firm to proceed with the full investigation and pursue claims against all relevant parties,
Attorneys for Evolution and the anonymous group are required to submit additional briefs to Porto’s courtroom by December 9, not exceeding 20 pages each.
Evolution’s legal document ran 276 pages, while Calcagni & Kanefsky’s memo in support of defendants’ motion for a protective order to maintain the group’s confidentiality ran 58 pages.
Financial Impact
After the DGE initiated an independent investigation based on the anonymous report, Evolution’s market capitalization dropped by approximately $10 billion.
The company’s share price remains significantly below the $162 mark it held on November 12, 2021, before the false report surfaced. Currently, Evolution’s stock is trading around $90, indicating a continued impact from the misleading allegations.