NEW YORK, Oct. 02, 2020 (GLOBE NEWSWIRE) — Zhang Investor Law announces a class action lawsuit on behalf of shareholders who bought shares of YayYo, Inc. (OTC: YAYO) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with YayYo’s November 2019 initial public offering (the “IPO”). The lawsuit seeks to recover investor losses under the federal securities laws.
If you wish to serve as lead plaintiff, you must move the Court before the November 9, 2020 DEADLINE. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
To join the class action, go to http://zhanginvestorlaw.com/join-action-form/?slug=yayyo-inc&id=2412 or call Sophie Zhang, Esq. toll-free at 800-991-3756 or email [email protected] for information on the class action.
According to the lawsuit, defendants throughout the Class Period made 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 of 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.
Lead plaintiff status is not required to seek compensation. You may retain counsel of your choice. You may remain an absent class member and take no action at this time.
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