NEW YORK, Aug. 26, 2020 /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of YayYo, Inc. (OTC: YAYO) pursuant and/or traceable to the Company's initial public offering conducted in November 2019 (the "IPO") that a securities class action was filed. The lawsuit seeks to recover damages for YayYo investors under the federal securities laws.
To join the YayYo class action, go to http://www.rosenlegal.com/cases-register-1915.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] or [email protected] for information on the class action.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY RETAIN COUNSEL OF YOUR CHOICE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. AN INVESTOR'S ABILITY TO SHARE IN ANY POTENTIAL FUTURE RECOVERY IS NOT DEPENDENT UPON SERVING AS LEAD PLAINTIFF.
According to the lawsuit, the IPO Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) Founder and former CEO El-Batrawi continued, directly and/or indirectly, 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 underwriters in marketing YayYo's IPO from Westpark's offices in Los Angeles; (2) El-Batrawi never sold his 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) certain creditors of YayYo were promised that in exchange with their agreeing to purchase shares in the IPO (in order to permit the underwriters to close the IPO), YayYo would repurchase those shares from them after the IPO using proceeds from the IPO; (4) the 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; and (6) YayYo owed Social Reality, Inc. $426,286 in unpaid social media costs, most of which were more than a year overdue and payment had been delayed while YayYo attempted to complete the IPO. When the true details entered the market, the lawsuit claims that investors suffered damages.
A class action lawsuit has already been filed. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, go to http://www.rosenlegal.com/cases-register-1915.html or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. of Rosen Law Firm toll free at 866-767-3653 or via e-mail at [email protected] or [email protected].
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm's attorneys are ranked and recognized by numerous independent and respected sources. Rosen Law Firm has secured hundreds of millions of dollars for investors. Attorney Advertising. Prior results do not guarantee a similar outcome.
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
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New York, NY 10016
Tel: (212) 686-1060
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SOURCE Rosen Law Firm, P.A.