YAYYO, INC. CLASS ACTION ALERT: WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP REMINDS INVESTORS THAT A SECURITIES CLASS ACTION LAWSUIT HAS BEEN FILED ON BEHALF OF SHAREHOLDERS OF IN THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA AGAINST YAYYO, INC.
NEW YORK and SAN DIEGO, Oct. 5, 2020 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein") announces that a federal securities class action lawsuit has been filed on behalf of investors who purchased YayYo, Inc. ("YayYo" or the "Company") (OTC: YAYO) securities pursuant and/or traceable to the Company's initial public offering conducted on November 14, 2019 (the "IPO" or "Offering") in the United States District Court for the Central District of California.
All investors who purchased shares of YayYo, Inc. and incurred losses are urged to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses in the shares of YayYo, Inc., you may, no later than November 9, 2020, request that the Court appoint you lead plaintiff of the proposed class.
The filed complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that:
- 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;
- 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;
- 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;
- defendants intended to repurchase shares purchased by creditors of YayYo in the IPO using IPO proceeds:
- YayYo owed its former President, CEO, and Director a half of million dollars at the time of the IPO;
- 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
- that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
In November 2019, YayYo completed its initial public offering ("IPO"), in which it sold approximately 2.7 million shares of common stock at $4 per share.
Then, on February 10, 2020, the Company announced that its Board of Directors had decided to delist YayYo's common stock from the NASDAQ.
Since the IPO, the Company's shares have traded as low as $0.25, or 94% below the IPO price.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at [email protected], or visit our website at www.whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE Wolf Haldenstein Adler Freeman & Herz LLP
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