Evolution filed a brief in New Jersey court again seeking the identity of the group behind an attempted 2021 takedown of the business on Friday.
Evolution filed a brief in New Jersey court again seeking the identity of the group behind an attempted 2021 takedown of the business on Friday (15 November).
The 2021 illegal markets report, which Evolution has described as “inaccurate, false, defamatory and methodologically flawed”, purported to prove the supplier was active in prohibited jurisdictions.
The document was submitted to the New Jersey Division of Gaming Enforcement (DGE) and the Pennsylvania Gaming Control Board (PGCB), neither of which were ultimately able to substantiate the allegations contained within.
Bloomberg also received a copy of the report and quoted anonymous sources who said its commissioner was an unidentified competitor, which Evolution highlighted as proof it was drawn up to damage the company.
The aftermath of the report’s release three years ago resulted in an approximate 36% fall in Evolution’s share price, equating to a loss in value of approximately $10bn.
Both the entity that commissioned the report and the investigative company that compiled it remain unknown, with white collar litigation firm Calcagni & Kanefsky (C&K) having served as its face.
Unveiling the report’s authors identities has been the focus of Evolution’s litigation in the New Jersey courts, with the multi-year case having faced rounds of gruelling discovery fights.
This included an appellate court decision, which at one point ruled that the decision to unveil the identities of the groups behind the report would depend on its veracity.
After many months of delays the initial limited discovery has now been completed, which included depositions from current and former Evolution employees and from C&K employees involved with the report.
‘Riddled with mistakes’
In its latest filing, the live dealer giant argued the depositions prove C&K had submitted to the DGE an “unvetted report riddled with mistakes”.
As such, Evolution said it is entitled to know the identity of the anonymous investigative Firm that was charged with drawing up the 2021 illegal markets report.
Evolution’s attorneys said: “This case presents the question of whether an anonymous wrongdoer may spread demonstrably false claims against a business, causing billions of dollars of damages, and then avoid accountability by laundering the false statements through counsel.
“The answer to this question is self-evidently no, as New Jersey law has never allowed wrongdoers to shield their identities through the simple expedient of hiring a law firm to disseminate their false statements.”
They added the anonymous investigative firm employed a campaign of deceit and subterfuge against individuals associated with Evolution.
Evolution blast deceit and subterfuge of accusers
The purpose of this was allegedly to trick people into making false statements that were secretly recorded, including that Evolution was violating the law by accepting cash payments for gaming and offering its services in restricted jurisdictions.
The firm had contacted the individuals under false pretences: for example, Evolution subsidiary Ezugi CEO, Kfir Kugler, was approached as part of a potential business partnership with a Sudanese billionaire.
Evolution’s lawyers argued C&K had removed important context when confirming the findings of the report, including missing contradictory statements elsewhere in the conversations, and that Kugler was under the influence of alcohol when he was recorded.
The attorneys added: “It is now clear that defendants relied on an uninformed, imprecise, and sloppy investigation into Evolution’s business model that involved deceptive, secretly recorded conversations.
“Indeed, defendants lured current and former Evolution employees into conversations about Evolution’s business under false pretences, recorded those conversations, and relied on snippets of these conversations to make sweeping (and false) allegations about Evolution’s business.”
C&K claim DGE letter vindicates report
In a separate legal brief also filed on Friday, C&K argued their clients’ identities should remain anonymous.
In support of this, the law firm claimed the contents of the DGE letter that closed its investigation into Evolution actually vindicated the illegal market report.
C&K said: “The deposition testimony and the DGE’s reasoning confirm the report’s veracity and thus compel the conclusion that Evolution’s claims are not of sufficient weight to overcome the strong policy interests underlying RPC’s general rule of nondisclosure of a client’s identity.”