LOS ANGELES--(BUSINESS WIRE)--The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against YayYo, Inc. (“YayYo” or “the Company”) (OTC: YAYO) for violations of the federal securities laws.
Investors who purchased the Company's shares pursuant and/or traceable to the Company’s November 2019 initial public offering (the "IPO"), are encouraged to contact the firm before October 5, 2020.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 1880 Century Park East, Suite 404, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at firstname.lastname@example.org.
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. YayYo founder and former CEO El-Batrawi continued to maintain direct and indirect control over the Company, involving himself in its daily business operations, including assisting the underwriters in marketing the Company’s IPO. El-Batrawi did not sell his 12,525,000 “Private Shares,” maintaining his controlling interest despite NASDAQ’s requirement that he control not more than 10% of the Company per its listing agreement. The Company’s creditors were promised an arrangement in which they would purchase shares as part of YayYo’s IPO which the Company would then repurchase. The Company planned to fund this repurchase scheme with money from the IPO itself. YayYo owed large amounts of money to creditors including a social media service provider and its own former President, CEO, and Director. Based on these facts, the Company’s public statements were false and materially misleading throughout the IPO period. When the market learned the truth about YayYo, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
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