Yippy, Inc. CEO Files $50 Million Lawsuit Against Magna Group LLC

NEW YORK, June 24, 2015 /PRNewswire/ -- Richard Granville, the CEO of technology company Yippy, Inc., filed a $50 million lawsuit in New York Supreme Court against the "death spiral" financier Magna Group LLC and its principals Josh Sason, Ari Sason, and Michael Abitebol.

The lawsuit, filed on June 16, 2015, alleges that Magna participated in a scheme to manipulate the price of Yippy's stock.  Magna's "pump and dump" scheme involved the issuance of phony press releases, hypothecation and naked short selling of Yippy's stock, and attempted corporate bribery, according to the complaint.  Granville is suing Magna for fraud and unjust enrichment.

This lawsuit comes on the heels Bloomberg's March 12, 2015 report about Magna and its founder Josh Sason entitled, "This 27-Year-Old Made Millions Riding the Death Spirals of Penny Stocks."  The Bloomberg article describes how Magna profited from the collapse of small, publicly traded companies that had borrowed money from Magna.  (See article: http://bloom.bg/1HIedWP)

In March 2015, Granville posted statements referring to the Bloomberg article and describing Magna's business practices.  In response, Magna's principals Josh Sason, Ari Sason, and Michael Abitebol sued Granville for defamation, claiming that his words had cause them "severe emotional distress."  Granville responded to the defamation suit by claiming truth as a defense:  "Granville stands by these statements because, as discussed below, they are true. Granville is fully prepared to come into court, swear an oath, and defend his words and actions."

The complaint adds:  "As a businessman, a U.S. Navy veteran, and man of devout faith, Granville feels a moral and ethical obligation to help expose the truth of the Magna Parties' business practices. In so doing, Granville's objective is to save other entrepreneurs from the Magna Parties' vicious and immoral business practices, and to see that the Magna Parties are brought to account for the jobs, companies, and lives that they have destroyed in the name of personal enrichment."

Granville and Yippy are represented by the Manhattan law firm John H. Snyder PLLC, which has initiated an investigation into the broader business practices of the Magna Group in preparation for a potential class action.

Interviews Available with Attorney John H. Snyder & CEO of YIPPY, Richard Granville: Contact: Mark Goldman & Ryan McCormick @ 516-639-0988 / 516-901-1103 and [email protected]   / [email protected]

SOURCE John H. Snyder PLLC