|Company name||YayYo, Inc.|
|Status||Class Action Complaint Filed|
NEW YORK, October 14, 2020 – Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of investors that purchased YayYo, Inc. (Other OTC: YAYO) securities pursuant and/or traceable to the registration statement, as amended, issued in connection with YayYo’s November 2019 IPO (the “Registration Statement”). Investors have until November 9, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
In November 2019, YayYo held its IPO, issuing approximately 2,625,000 shares to the investing public at $4.00 per share, pursuant to the Registration Statement.
By the commencement of this action, the Company’s shares trade significantly below the IPO price.
The complaint, filed on September 9, 2020, alleges that the Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) defendant 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 a 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.
If you you purchased YayYo securities pursuant and/or traceable to the Registration Statement issued in connection with YayYo’s November 2019 IPO, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato, Marion Passmore, or Brandon Walker or by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.