Vinco Ventures (NASDAQ:BBIG) has announced the resignation of 3 board members.
On June 27, 2023, Richard Levychin resigned as a Board member effective immediately.
On June 27, 2023, Lisa King resigned as a Board member effective on June 28, 2023.
On June 29, 2023, Brian Hart resigned as a Board member effective immediately.
Street Insider reports that none of the resignations were as the result of any disagreement with the Registrant, its management, the Board or any committee of the Board, or with respect to any matter relating to the Registrant’s operations, policies or practices.
The news comes after the BBIG fraud lawsuit successfully gained more attention as more media outlets have picked up the story.
“We believe the board of directors intentionally failed their fiduciary responsibility and have colluded to execute harmful and self-dealing actions that have caused a 99 percent decrease in shareholder value,” Christopher Muntz, one of the shareholders named in the lawsuit, told the Las Vegas Review-Journal.
Clark County Republican Party Chairman Jesse Law is also tied to the BBIG fraud lawsuit as a member of a company’s board of directors accused of defrauding shareholders and furthering their own self-interests.
Jason Dick, vice president of NO RINO Nevada, a political action committee that says it is dedicated to exposing corruption and removing corrupt Republicans from office, told the Review-Journal his committee is endorsing Bruchhagen instead of Law due to the lawsuits.
“We believe that what has happened here is an example of someone becoming a politician to further themselves financially, instead of furthering the interests of the Republican Party,” Dick said.
What Will Happen to Vinco Ventures?
Shad Vick, a plaintiff in one of the BBIG lawsuits says he’s not jumping to any conclusions but that in his opinion, jumping ship without making shareholders whole is “dangerous at best”.
Attorney David A. Katz has stated in the past that resigning from the board of directors of a troubled company may not be a simple matter.
Often times, in doing so, the directors of the company may have breached their duty of oversight which may lead to facing personal liability in trial.
“Our case is just the beginning”, says Vick.
In April, the BBIG community was able to raise more than $42K to fight the Board of Directors in court.
Investors have been calling the Board of Directors to step down on social media, claiming the BoD are not qualified to serve investors.
“That amendment to our articles of incorporation and addition of preferred shares without shareholders vote was illegal.
We are attempting to stop the reverse split and dilution that we believe was rammed through an illegal proxy and invalid shareholders meeting,” said Shad.
Vinco Ventures announced a 1-for-20 reverse stock split in May which the company stock has already undergone.
“We wish to thank our investors for their continued support as we work to refocus Vinco’s operations.
The approval of the reverse split under the Company’s plan to maintain its Nasdaq listing, together with our ongoing refocusing efforts, better positions us to realize the great potential we see ahead,” stated James Robertson, Chief Executive Officer.
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