Vinco Ventures (NASDAQ:BBIG) investors are suing company executives, including former co-CEOs Theodore Farnsworth and Lisa King in a new lawsuit.
The plaintiffs in the case are Shadwrick Vick, Christopher Muntz, and Darryl Wayne Genis.
Shadwrick and Christopher were two of the nominees elected by shareholders in March to join Vinco Venture’s Board of Directors.
However, shareholders are taking a much different approach now.
Why is Vinco Ventures being sued?
BBIG investors believe that the company is failing everyday shareholders and must be held accountable for the significant losses seen in the market.
Many investors allege fraud could be at play.
BBIG stock is down more than -43% this year-to-date and more than -84% in the past year alone.
The stock rose 8.61% on Thursday to $0.26 per share from the day’s low of $0.24, respectively.
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On July 24, 2022, the Board of Directors of Vinco Ventures, Inc. terminated Theodore Farnsworth, the former CEO of Helios and Matheson Analytics and Chairman of MoviePass, as the Company’s Co-CEO less than 72 hours after he was appointed, Lisa King as the President of ZVV Media Partners, LLC and former CEO of the Company, Erik Noble as the Company’s Chief Security Officer and any other role, and any and all arrangements between the Company and Roderick Vanderbilt, including as business development director and Chairman of the Board.
All of which are the defendants in the new lawsuit brought forth by BBIG investors.
Latest BBIG Stock News
Vinco Ventures struck a deal to acquire The National Enquirer, The Globe, The National Examiner and The National Enquirer UK.
Vinco Ventures is also betting that the U.S. government will ban China-based social media platform TikTok.
A press release from Vinco Ventures suggested that this proposed ban could take place in the near future.
Vinco Ventures’ similar social media platform, Lomotif, would “step up and fill the void created by a potential TikTok ban.”
But even if this happens, there’s no guarantee that American social media users would switch to Lomotif — though that would be incredibly ideal for shareholders.
Still, investors should tread cautiously as forces in the market may be looking for an opportunity to short the stock and get it delisted, enabling sellers to capitalize without paying taxes.
BBIG investors are doing everything in their power to save the company and take on a much larger and active role in helping the company succeed.
Only time will tell how far these efforts go to impact the trajectory of Vinco Ventures.
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