Broker-dealer Negligence Lawyers Assist Neglected Aegis Investor

Are You an Investor Who Suffered losses in Aegis Capital-Underwritten YayYo IPO?

Broker-Dealer Faces Investor Fraud, Negligence, and Misrepresentation Allegations

If you are an investor who took part in an initial public offering (SPO) sold by Aegis Capital Corp. and you suffered investment losses, you may want to consider exploring your legal options. Stock IPOs are often marketed by brokerage firms as significant opportunities for investors, but that doesn’t always prove to be the case.

In some instances, the issuers of this type of offering, and/or the broker-dealers who sold them, are later found to have made misrepresentations and omissions when marketing IPOs to customers. Investor fraud may have been a factor.

Our experienced broker-dealer negligence lawyers at Shepherd Smith Edwards and Kantas (investorlawyers.com) are speaking with investors who purchased shares in YayYo or other IPOs underwrote by Aegis to help them to determine whether they have grounds for an investor loss claim against the firm.

As an underwriter, Aegis was not only involved in deciding the initial price offering for YayYo securities but also, would have bought these securities and sold them to investors while making money from the transactions.

Should You File a FINRA Arbitration Claim Against Aegis for Broker Fraud Related To Your IPO Losses?

YayYo investors allege that their shares, which originally sold for around $4/share, are now worth pennies. They believe that their stock losses are a result of fraud.

According to Bloomberg Law, a California federal judge recently approved $1.7M of settlements to investors of YayYo who accused rideshare company EVmo Inc. (formerly YayYo Inc.) of making misrepresentations that inflated the value of YayYo’s stock during its initial public offering. As an underwriter, Aegis Capital Corp. has to pay $500K.

In a 2020 lawsuit submitted in the Southern District of New York, YayYo investors accused underwriter Aegis of not disclosing that YayYo founder Ramy El-Batrawi, who had a troubled history of alleged securities violations, continued to run the company.

With him still in charge, the brokerage firm and other defendants tried to get another $10M in investors’ money from IPO proceeds. The plaintiffs alleged material misrepresentation and also securities fraud. They accused Aegis of negligence, fraud, and conspiracy.

Joining a securities lawsuit is one way to hold Aegis responsible. However, if you want to maximize your chances for a full recovery of your investor losses, you may want to consider filing a Financial Industry Regulatory Authority (FINRA) arbitration case against the broker-dealer for selling you YayYo shares.

Brokerage firms have a duty to conduct the proper due diligence before selling an investment while making sure it is suitable for you given your investing goals, risk tolerance level, and other criteria. Making misrepresentations and omissions is an all too common type of broker misconduct. This has led to many customers purchasing shares that were unsuitable for them.

Our expert FINRA arbitration lawyers have recovered many millions of dollars on behalf of retail investors, retirees, high-net-worth individual investors, and institutional investors against brokerage firms and their financial advisors for securities fraud and negligence. Allow Shepherd Smith Edwards and Kantas to help you explore your legal options.

Did You Sustain Investment Losses in Other IPOs Sold by Aegis?

Over the years, Aegis Capital has served as bookrunner, underwriter, co-manager, and placement agent on many types of offerings, including IPOs, Pre-IPOs, and special purpose acquisition companies (SPACs). These investment opportunities can start off with a lot of hype, compelling many investors to buy right away rather than risk losing out. Yet not all of these investments prove to be viable.

Our savvy securities fraud attorneys would like to offer you a free, no-obligation case consultation to determine whether you have grounds for a brokerage firm arbitration claim against Aegis. Over the years, Shepherd Smith Edwards and Kantas have represented investors in FINRA arbitration against this broker-dealer. Call (800) 259-9010 today.