BBIG investors now take on toxic lenders in a new lawsuit which seeks rescissionary damages in excess of $250 million.
This action is led by Shadwrick Vick on behalf of VINCO shareholders.
The lawsuit alleges that Hudson Bay Master Fund Ltd., Sander R. Gerber, Yoav Roth, BHP Capital NY, Inc., and Bryan Pantofel, have engaged in “predatory lending practices in violation of federal securities law,” according to a new press release.
The lawsuit was filed in the United States District Court for the Southern District of New York and accuses the defendants of violating Section 15(a) of the Securities Exchange Act of 1934 by failing to register as “dealers,” despite engaging of the practice of buying and selling securities for their own benefit.
“Defendants practices are demonstrated by the fact that they have made similar unlawful, predatory loans to publicly traded companies, including VINCO, that caused the issuance of millions, if not billions, of newly-issued shares to the to the company and its shareholders,” the press release states.
Mark Basile’s The Basile Law Firm P.C. has helped lead several retail cases involving fraud, including that of Vinco Ventures.
“One problem with our markets are the unregistered broker-dealers issuing toxic funding to all to willing over-paid executives who forget their fiduciary duty to the company & stake holders,” says @MemeStockMillyz on X.
“BBIG shareholders are making headway in fighting for justice. I’ve personally been financially devastated by bad actors,” says another user.
This is a developing story — for more market news and updates like this, follow me on Twitter or join the popup newsletter.
Other Market News Today
South Korea now speaks on the impact of illegal short selling after the illicit practice accounted for 20% of daily transactions.
Financial watchdogs have vowed to continue rooting out the malpractice in the markets.
“The FSS found that the violation rate exceeded 20% in some cases, which suggests that illegal transactions have a big impact on a certain stock,” the financial regulator said in a statement late Tuesday.
“It’s necessary to consider the impact of illegal short sales on an individual stock as such trades hinder fair pricing and increase short-term volatility,” it said.
Bloomberg reports the South Korea’s financial watchdogs derived the 20% figure by dividing the amount of violated orders on a certain stock by its daily trading value.
The FSS did not identify the equities that saw illegal trades and declined to say how frequently the trades exceeded that ratio.
In November, South Korea imposed a ban on short selling through mid-2024, a decision that drew big celebration from retail investors in the country.
Professional investors on the other hand are skeptical, seeing the move as being politically motivated ahead of the election.
Financial authorities have defended the decision, describing illegal trades such as naked short selling — an act of selling shares without borrowing them first — as “rampant” and hurting fairness in the market, reports Bloomberg.
Furthermore, Bloomberg reported on Monday that investigators have turned up just 110 billion won worth ($83 million) of alleged naked short selling by four global investment banks.
In the U.S., naked short selling continues to be a big problem.
Citadel Securities is currently under heavy scrutiny for marking short sales as long sales over a period of five years.
Market News Published Daily 📰
Don’t forget to opt-in for push notifications so you don’t miss a single article!
Also, thank you to all of our blog sponsors.
This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.
Scroll below to view my stock purchases this month!
Wondering which stocks Frank Nez is holding? Which stocks is Frank Nez buying?
Frank Nez is now sharing his exclusive and personal stock portfolio with readers, only on the Patreon.
11/16/2023 – Today I invested $1,000 in two different stocks for a brand new stock dividend portfolio I am creating for 2024.
Recommended For You ✨
- A US Company Now Declares An Unexpected Bankruptcy
- Wells Fargo is Now Freezing Bank Accounts in New Scandal
- The US Treasury Direct is Now Freezing Customer Accounts
- Chase Customers Now Unable to Access Money Through ATMs
- Florida Now Has Massive Departures As Hundreds of Thousands Leave
- SNAP Benefits Will Now Increase For The Year 2024