Gaming Giant Evolution AB Probes $3 Billion Libel Mystery, Judge Calls for Deeper Scrutiny

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In an intriguing corporate whodunit, global online gaming juggernaut Evolution AB currently finds itself embroiled in a legal mystery, attempting to unmask the author of a damning report that slashed an eye-watering $3 billion from their market capitalization. At the center of this unfolding drama is New Jersey Superior Court Judge John C Porto who has decreed that before unmasking the elusive author, the veracity or lack thereof of the controversial Evolution report must be thoroughly established.

The Swedish gaming titan is accusing an enigmatic entity of libel and is also suing the undisclosed investigative agency that compiled the alleged libelous report. In addition, Evolution is filing a suit against Calcagni & Kanefsky (C&K), an accomplished New Jersey law firm. In November 2021, C&K submitted the contentious report to the New Jersey Division of Gaming Enforcement (DGE) acting on behalf of an anonymous client.

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The contentious document accused Evolution of supplying games to operators engaged in business dealings within unregulated markets, even including reputedly outlawed terror-ridden nations, notably Iran, Syria, and Sudan. Evolution vehemently refutes these allegations. However, the damaging claims resulted in a shocking 36% plummet in the company’s share value when the news initially hit the public.

In response, the DGE undertook a comprehensive investigation but found zero evidence to substantiate that Evolution had in any way authorized, supported, allowed, or materially profited from offering its content to operators in any zones deemed prohibited by the NJ DGE.

In harmony with the findings of the DGE, gaming authorities in Pennsylvania conducted a separate investigation and arrived at a parallel conclusion.

As the curtain rises on another chapter of this saga, a New Jersey Superior Court Judge weighed in this week, ruling that further exploration is necessary to discern the truthfulness behind the allegations in the report before Evolution can learn the identity of the party it is suing.

This is centered around maintaining the equilibrium of an attorney’s commitment to not disclose a client’s identity versus a plaintiff’s entitlement to the information they require to proceed with a civil lawsuit. This judgment will compel the continuation of the discovery phase in which depositions are due from C&K’s top counsel, Ralph Marra and senior partner Thomas Calcagni. The attorneys of C&K posit that these depositions will corroborate the authenticity of the report.

Adding another twist, inside sources reveal that the report was orchestrated by a US-based gaming operator, allegedly trying to equalize the US online casino markets. The insinuation being, Evolution had secured an unfair leg up, engaging in the business conducts implicated in the report.

Additionally, the anonymous party had commissioned a second report designed to smear Bet365, a well-known digital casino platform. With a preemptive media release planned, the second report, however, seemed to be shelved when the Evolution controversy exploded.