Maker of School Security Systems Sued in Class Action Over AI-Powered Detection Claims

A federal class-action securities fraud lawsuit against Evolv Technology accuses the global company of deceiving investors and school districts with false claims about its “AI-powered” weapons detection system.

The 39-page complaint was filed on March 25 in the U.S. District Court in Massachusetts.

The deadline for additional plaintiffs to join was May 24.

Lead plaintiff Gerald Raby, an investor, alleges that this advanced security system did not function as efficiently as even the simplest low-tech metal detector despite its claims, as cited in court papers: “Evolv is the global leader in AI-based touchless security screening.

“Unlike conventional walk-through metal detectors, our products use advanced sensors, artificial intelligence software, and cloud services to reliably detect guns, improvised explosives, and large knives while ignoring harmless items like phones and keys.

“This not only enhances security at venues and facilities but also improves the visitor experience by making screening up to 10 times faster than alternatives at up to 70 percent lower total costs.”

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“The statement was materially false and misleading,” the complaint stated, “because Evolv does not reliably detect knives or guns.”

The complaint alleged falsified statements in annual reports and documents about how the Evolv “Express” security system made by the publicly traded company was tested.

Court papers said Evolv redacted information from one of the vendors hired to test its system, IPVM, that noted the detection rate for micro-compact pistols was 92 percent, compared to 100 percent by a conventional metal detector.

And for knives, the overall detection rate was only 53 percent. That figure was also redacted, according to the papers.

Six months later, it reported that the company’s “AI scanner used in hundreds of U.S. schools misses knives,” court papers noted.

According to court papers, the BBC reported on one incident—at Proctor High School in Utica, New York—where the $3.7 million security system failed to detect a 9-inch knife that one student used to stab another student in the face, head, neck, shoulder, back, and hand.

Evolv also failed to detect knives in three other Utica district schools.

“The kids [who had the knives] all said they walked right through the weapons detection system. We asked them about that. It truly, truly does not find knives,” Utica City School District Superintendent Brian Nolan, according to court papers, said.

Following that news report in May 2023, the value of Evolv stock dropped 7.56 percent to $5.50 a share.

Six months later, the company announced that it was cooperating with the Federal Trade Commission’s request for more information about Evolv’s marketing practices, and the stock price then fell to $3.77 a share, court papers said.

The number of parties who joined the class-action suit has not been revealed yet, but the complaint says there are hundreds, if not thousands, of potential co-plaintiffs.

It seeks compensation for any parties to the suit who purchased or acquired Evolv stock between June 28, 2021, and March 13, 2024.

For school districts, AI-powered weapons detection systems are highly sought after these days, especially with various state laws and pushback from organizations that oppose AI school security tools that focus on facial recognition capabilities.

In December, the technology company Iterate.ai began offering its weapons detection system to schools for free.

The software, which interfaces with existing cameras using the Python coding system through school computer servers, can recognize knives at least six inches long, in addition to handguns, rifles, and certain types of bulletproof vests, according to the company website.

Evolv’s website states its systems serve more than 800 U.S. school buildings, 350 hospital buildings, 40-plus major sports teams, and 1 million people who are screened daily.

On Feb. 20, the Massachusetts-based company issued a news release that said Evolv has been the target of a short seller “misinformation” campaign, coordinated with media outlets, where the short sellers are incentivized to bet on and profit from a drop in the company’s stock price.

Evolv’s news release also said that while its Express system is designed to detect firearms and mass casualty weapons, it still detected more than 200,000 knives in 2023.

In many instances at schools, the release said: “Knives are already present inside the venue for various reasons.”

In an email response to The Epoch Times, Alexandra Smith Ozerkis, Evolv’s vice president of corporate communications, said: “We believe the claims are without merit, and Evolv will vigorously defend itself.”

“We are committed to our mission of making the world safer and stand behind our technology as vetted by hundreds of security professionals in real-world environments,” she said.