Lead Plaintiff Deadline: 11/09/2020
SUMMARY OF CASE:
A securities class action has been filed against YayYo, Inc. (YAYO) on behalf of persons or entities who purchased or otherwise acquired publicly traded YaYo, Inc. (“YaYo” or the “Company”) securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with YaYo’s November 14, 2019 initial public offering (the “IPO”). This case has been filed in the USDC – California (Central).
The Complaint alleges that the the Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) defendant Ramy El-Batrawi (“El-Batrawi “) continued to exercise supervision, authority, and control over YayYo, and was intimately involved, on a day-to-day basis, with the business, operations, and finances of the Company, including assisting the Underwriter Defendants in marketing YayYo’s IPO; (2) defendant El-Batrawi never sold the 12,525,000 “Private Shares” and continued to own a controlling interest in YayYo despite the NASDAQ’s insistence that he retain less than a 10% equity ownership interest in connection with the listing agreement; (3) defendants promised certain creditors of YayYo that in exchange to their agreeing to purchase shares in the IPO – in order to permit the Underwriter defendants to close the IPO – YayYo would repurchase those shares after the IPO; (4) defendants intended to repurchase shares purchased by creditors of YayYo in the IPO using IPO proceeds: (5) YayYo owed its former President, CEO, and Director a half of million dollars at the time of the IPO; (6) YayYo owed SRAX, Inc. (formerly Social Reality, Inc.) $426,286 in unpaid social media costs, most of which was more than a year overdue as payment had been delayed while YayYo attempted to complete its IPO; and (7) as a result, defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.