We filed a lawsuit today to try to stop the meeting. The press release is shown below. However here's the backstory.
We called many law firms all over the country to understand the legal possibilities available to us. There was no single answer on what to do. Some said file a class action lawsuit. That would take years and could affect the morale of the company and shareholders. Others said to hire a proxy solicitor - cost was prohibitive. We then got into securities attorneys that focus on shareholder action. We found one in Nevada - but they said they couldn't help us because they needed to be licensed in New York as that's where the shareholder meeting was to take place at the time. Our primary goal was to stop the shareholder meeting in order to stop the reverse split, dilution of 750M new shares, acquisition of the Enquirer and all the other items. When you lose trust of your board - nothing is really valid. The meeting itself we didn't feel was valid as we weren't even allowed to inspect shareholder records and we still don't as of this writing, have any filings from 2022. How can you vote on items without knowing financials!!
Since we couldn't get a firm in time - we decided to pull all of our resources together and we built the case ourselves. I had about a 20 page draft of evidence and complaints about the company and board called "Vinco Notes". I had loose citations and sources but knew I could get them. I also had read Stomping Llamas essay on Vinco BoD corporation and was able to corroborate most of his sources. He allowed me to use his evidence.
Muntz had a well written out draft of the illegal preferred shares which became (Exhibit 1). He reviewed my document and made edits which became the outline for the team to continue writing the case.
Mamoud had more insight into illegal preferred shares and COI (Exhibit 2).
Miziker had illegal loans down - (Exhibit 4).
I hit on conflicts of interest and standing with the BBIGFamily website which became (Exhibit 3).
Sparacio was willing to write out the VVIP fraud and Enquirer deal - (Exhibit 5).
Austin had lomotif, Zash and other self dealing data - (Exhibit 6).
With this information Darryl starting writing the Complaint. Since he wasn't licensed in NV - he couldn't represent us as an attorney, nor did we want him to, but he could at least help us know what to look for and steps in legal filing process. We all wrote, edited, formatted and submitted. Patrick was an outstanding reviewer and second set of eyes as became Mohit as well. So we filed and through some headaches with court procedure (proper way to create a cover letter, Order was required, etc.) -we finally get our documents accepted into the court.
Here is the press release.
Retail Shareholders Vinco Ventures, Inc. (BBIG) File Complaint Alleging Securities and Wire Fraud Scheme by Theodore Farnsworth and the Vinco Board of Directors
4/12/2023 - 3 retail shareholders, including Shadwrick Vick, Christopher Muntz, and 4 additional shareholders who wrote declarations, have filed a complaint in Nevada District Court against Theodore Farnsworth, Roderick Vanderbilt, Jesse Law, Brian Hart, Lisa King, Richard Levychin & Vinco Ventures, Inc. The complaint alleges the defendants are actively engaged in a securities and a wire fraud scheme.
Farnsworth, who is currently under indictment and released on 1 million dollar bond, is accused of using his control over the "Farnsworth Five" - the current Vinco Board of Directors - to carry out this alleged scheme. His partner, and Chairman of the Vinco Board, Rod Vanderbilt signed the bond as a Surety.
"We are convinced Mr. Farnsworth is still engaging in illegal activities seriously harming innocent investors," said an anonymous shareholder. "As a member of the investment community, we cannot stand idly by and allow this brazen theft to continue. We are happy to support these fellow shareholders in an action that will hopefully help all of us with our investment."
The complaint alleges that the Board and Farnsworth's actions have caused significant harm to investors, including the plaintiffs in this case. Plaintiffs seek injunctive relief and to remove the current board of directors, none of whom own shares in BBIG. Plaintiffs also seek damages and other relief for the harm they have suffered from the illegal actions of Farnsworth and his planted directors.
Over 1400 shareholders representing over 45 million shares of BBIG have organized at www.bbigfamily.com to coordinate efforts and crowdsourcing due diligence. The site provides a venue to anyone who has been harmed by Farnsworth's alleged activities to receive communications from several social media portals with the intent to collaborate.
Case A-23-868781-C can be reviewed on Nevada 8th Judicial District website.