The BBIG emergency motion has now been denied according to the latest court hearing footage released on Friday.
This emergency motion aimed to appoint custodians for the company or to comply with Nasdaq rules to avoid permanent delisting or alternatively, appointment of a receiver.
On Friday, July 28th, BBIG stock was suspended from the Nasdaq and moved to the OTC markets.
The judge says plaintiffs have made a valiant effort to save their investment, but that the emergency motion has been denied due to the following reasons:
- The Judge stated that it seems Plaintiffs are looking to use the court system to take control of Vinco Ventures when the company already has a Board of Directors in place.
- The final verdict states that the company is not insolvent, nor is there any proof of insolvency, and that the company is not obligated to re-enlist in the Nasdaq.
“You have the right to challenge the actions of the Board at a later time, at this point we don’t even know decisions the Board even made as to whether they met, or they tried to make a decision to appeal or not.
But I also don’t know if whatever decision they’ve made was in the best interest of the company at this point.
I just don’t have that evidence. So, for those reasons the motion is denied,” said the Judge on Thursday’s hearing.
Plaintiffs as well as shareholders have expressed concerns over the fiduciary failures of the company’s Board of Directors.
Now investors have hired the services of Mark Basile to investigate the last 4 years of corporate board actions.
Some of these actions include claims of self-dealing and self-enrichment, diversion of assets, unlawful funding transactions, and breach of numerous possible laws and violations.
BBIG stock is down more than -93% this year-to-date and more than -97% in the past year.
Ted Farnsworth Was Now Arrested For Illegal Fraud Scheme
Former Vinco Ventures (BBIG) co-CEO Ted Farnsworth was arrested in New York on Wednesday for an alleged illegal fraud scheme that was rooted by the Justice Department back in November of 2022.
Bloomberg Law reports that following the initial arrest, Theodore Farnsworth was released on a $1 million bond, with special conditions, one of which required to notify his probation officer of his whereabout and travels, but failed to do so.
However, a new filing from the District Court of Florida states that Farnsworth’s current arrest warrant states “Bail Fixed at: no bond”, and is related to a bonds violation.
Upon the arrest of the defendant, he is to be brought before the Duty Magistrate Judge only for the purpose of advising the defendant of the charges against him and appointed of counsel.
On July 24, 2022, just four months prior to the allegations, the Board of Directors of Vinco Ventures, Inc. terminated Theodore Farnsworth, the former CEO of Helios and Matheson Analytics and Chairman of MoviePass.
Farnsworth alongside partner Mitchell Lowe were charged with misleading investors and making false statements about the movie subscription service to boost the stock price of its parent company, Helios & Matheson Analytics.
The Justice Department said Farnsworth and Lowe are alleged to have falsely claimed that the number of tickets MoviePass subscribers were purchasing as part of their subscription was declining over time.
Instead, the pair had directed employees to implement tactics to prevent subscribers from using their unlimited service, according to prosecutors.
The former CEOs are charged with one count of securities fraud and three counts of wire fraud.
If convicted, they each face a maximum penalty of 20 years in prison.
The initial trial was set to begin in the US District Court for the Southern District of Florida on September 9.
Ted Farnsworth and other Vinco Ventures executives are facing massive scrutiny as shareholders of the company have also accused the board of defrauding investors to further their own self-interest.
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