Earlier today, attorney Mark R. Basile gave Vinco Ventures (OTCMKTS:BBIG) stock fans reason for hope. He announced that his firm, The Basile Law Firm, would be representing a group of retail BBIG shareholders. The Basile Law Firm will be opening an investigation in part into actions by the board of directors over the past four years, citing concerns of “self-dealing” and “self-enrichment.”
Basile announced this via X, the platform formerly known as Twitter. He went on to say that the investigation will not focus solely on the board.
Announcement – my firm @otclawyers has been retained by a shareholder group of $BBIG retail investors to investigate the last 4 years of corporate board actions including claims of; self-dealing and self-enrichment; diversion of assets; unlawful funding transactions; breach of…
— Mark R. Basile,Esq. (@BasileEsq) July 28, 2023
This comes just as the Nasdaq exchange has suspended Vinco Ventures for failing to comply with its requirements for the number of independent board directors. The suspension took effect on July 28, 2023, and BBIG stock now trades via the over-the-counter market.
What’s Happening With BBIG Stock?
Earlier this week, BBIG stock soared after Vinco Ventures acknowledged that it had received a Nasdaq delinquency notice. However, news of the suspension has made that rally short lived. Since today’s trading began, BBIG is down more than 70%. Is trajectory suggests that it could easily have further to fall.
Vinco Ventures is also not a stranger to board controversy. In early June 2023, the company announced the resignation of three board members, sending BBIG stock down. Before that, a shareholder group had advocated for retail investors to be added to Vinco’s board. These developments have negatively impacted investor confidence, sending shares down 85% in 2023 and 90% over the past 12 months.
Additionally, investors should note that the Basile Law Firm has previously been involved in the meme stock community. Mr. Basile also posts on social media regarding his support for the MMTLP community, referring to the preferred shares for Meta Materials (NASDAQ:MMAT) that no longer trade.
As of now, no other details regarding the investigation have been provided by Basile or his firm.
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On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.