BBIG shareholders have filed an emergency motion in the Vinco Ventures lawsuit according to a new update provided by Plaintiffs.
“Plaintiffs Shadwrick J Vick, Christopher L Muntz, and Daryl Wayne Genis, by and through their attorneys of record, Hutchison & Steffen, PLLC, hereby submit their EMERGENCY MOTION TO APPOINT CUSTODIANS FOR THE COMPANY OR TO COMPLY WITH NASDAQ RULES TO AVOID PERMANENT DELISTING OR ALTERNATIVELY, APPOINTMENT OF A RECEIVER,” said the motion filed.
On July 14, shareholders requested for a Receiver, an agent of the court that is appointed by the judge (usually at the request of one of the parties.)
The Receiver’s responsibility is to ensure that property is protected or the business operates without interference or influence from the lawsuit parties.
However, the request for a Receiver was denied a week later.
Now Plaintiffs have hired the services of Mark Basile, who is also working on the MMTLP motion, 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.
“This investigation is not being limited to the Board of Directors, but will also include all funders, professionals and consultants that have counseled, approved, recommended or facilitated the above,” said Mark in a statement.
“We are just getting our feet wet on this matter, but do have a lot of colorful background supplied to us by the great BBIG community.
The recent Board resignations are troubling, perhaps directly connected with the local Nevada State Court action brought by a few shareholders looking for information on board activities.
But if they think that the State court action is the end of it, well, they may have another thing coming.
I cannot comment on the substantive issues just yet, but we are looking into the entire scope of potential wrongdoing that may result in a federal lawsuit under certain Securities and/or RICO laws,” Basile commented exclusively for FrankNez.
Vinco Ventures Fails Its Shareholders
The emergency motion states that Vinco Ventures has failed on numerous occasions to file its From 10-K and 10-Q.
“The Company has only seven (7) days in which to comply with the violated rules and/or request a review of the delisting determination by a hearings panel.
Otherwise, the Company will be unable to voluntarily correct its delisted status and will have to re-apply for permission to be listed on NASDAQ which is a difficult and time-consuming process, and has no guaranteed outcome.”
Plaintiffs argue that the court should appoint custodians over the Company to ensure that the Company complies with its obligations and avoid permanent delisting.
“The failure by the remaining Board members to comply with NASDAQ’s requirements, including the requirement to appoint three (3) disinterested directors, constitutes a further breach of the Board’s fiduciary duties and is tantamount to irreparable harm.
The harm from the Board’s wrongful actions to both the Company and its shareholders, including the Plaintiffs, cannot be overstated.
Without the ability to be traded on NASDAQ – the second largest trading platform in the United States – the Company is relegated to a so-called “quotation market” which means that institutional investors such as Goldman Sachs, Morgan Stanley, etc., are not allowed to invest or fund the Company, and the Company cannot even become involved financially with the over-the-counter (“OTC”) markets,” states the BBIG emergency motion.
Plaintiffs also argue that Vinco Ventures is at risk of losing all of its ‘white papers’ on its technology, which in turn is detrimental to the company and its shareholders.
BBIG stock is currently down more than -94% this year-to-date and more than -96% in the past year.
Mark Basile on New BBIG Emergency Motion
“This new motion has a decent chance of success as the BOD failures pile up.
Judge is going to be PISSED the BOD and their attorneys withheld material information during the Receiver oral argument, releasing it officially the next day while sitting on it for several.
They filed the very last day they could regarding SEC disclosure requirements. That doesn’t change the fact they mislead the court because THEY HAD THIS INFORMATION at the hearing.
Dirty tricks – Now the double delisting, $120m vanished, fraudulent Preferred Shares – looks like a major financial raid and cover up.
A specific former Board Member should consider being part of the solution because right now, it’s just doesn’t look good,” said Mark on Twitter.
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