The chairman of a failed 'TikTok killer' pleaded guilty to lying to investors to inflate the company's stock
During a hearing on Friday, Vanderbilt pleaded guilty to a conspiracy charge and admitted to making misleading statements about Vinco, Law360 reported. He also said he hid the involvement of Ted Farnsworth, who previously ran the former owner of movie ticket service MoviePass, and with whom he had a romantic relationship.
In 2024, a Business Insider investigation chronicled how Vinco's rise and fall followed a pattern similar to that of some other Farnsworth ventures, including MoviePass.
Farnsworth previously pleaded guilty to defrauding investors in MoviePass' parent company, Helios and Matheson Analytics, from 2017 to 2019. The Department of Justice charged Farnsworth and others with conspiracy for using "the same strategy to defraud" investors in Vinco, which he also pleaded guilty to.
"I did everything Ted asked me to do and never questioned him," Vanderbilt said during the Friday hearing, Law360 reported. "I concealed my relationship with Ted from the board and shareholders and allowed others to use my signature, not telling investors and the public that the company was failing even though I knew it was."
The docket entry for the scheduled hearing for a plea change is sealed. Vanderbilt's lawyer did not return a request for comment from Business Insider.
In 2021, Vinco announced plans to merge with Zash Global Media and Entertainment, which Farnsworth and Vanderbilt cofounded. Vanderbilt joined Vinco's board as chairman later that year, while Farnsworth ran Zash and briefly served as Vinco's CEO, according to court documents.
Under their helm, Vinco acquired a short-video app called Lomotif, which Farnsworth hyped as a "TikTok killer."
Retail investors flocked to these and other announcements. But, behind the scenes, company insiders previously described to BI a company on the verge of collapse.
The Department of Justice alleged in court documents that Vanderbilt and Farnsworth made "materially false and misleading representations relating to the businesses and operations of Vinco Ventures to artificially inflate the price of its stock and increase the volume of Vinco Ventures shares traded," from around November 2020 to September 2024.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
13 minutes ago
- CNBC
Chinese companies are looking to go global, no longer just about hard manufacturing
Joe Ngai, greater China chairman at McKinsey, says Chinese companies are increasingly producing products that have a global market, like Labubus, Tiktok, and Black Myth: Wukong – but there's some way to go before they become 'truly global'.
Yahoo
an hour ago
- Yahoo
Nordson (NDSN) Reports Q2: Everything You Need To Know Ahead Of Earnings
Manufacturing company Nordson (NASDAQ:NDSN) will be reporting results this Wednesday afternoon. Here's what to look for. Nordson beat analysts' revenue expectations by 1.1% last quarter, reporting revenues of $682.9 million, up 5% year on year. It was a satisfactory quarter for the company, with EPS guidance for next quarter topping analysts' expectations but organic revenue in line with analysts' estimates. Is Nordson a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Nordson's revenue to grow 9.1% year on year to $721.7 million, improving from the 2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.63 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nordson has missed Wall Street's revenue estimates three times over the last two years. Looking at Nordson's peers in the professional tools and equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lincoln Electric delivered year-on-year revenue growth of 6.6%, beating analysts' expectations by 5.1%, and Hillman reported revenues up 6.2%, topping estimates by 2.6%. Lincoln Electric traded up 7.8% following the results while Hillman was also up 22.9%. Read our full analysis of Lincoln Electric's results here and Hillman's results here. There has been positive sentiment among investors in the professional tools and equipment segment, with share prices up 4.8% on average over the last month. Nordson's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $251.80 (compared to the current share price of $215.93). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Analog Devices (ADI) Q2 Earnings: What To Expect
Manufacturer of analog chips Analog Devices (NASDAQ:ADI) will be reporting results this Wednesday before market hours. Here's what to look for. Analog Devices beat analysts' revenue expectations by 5.2% last quarter, reporting revenues of $2.64 billion, up 22.3% year on year. It was a very strong quarter for the company, with a beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. Is Analog Devices a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Analog Devices's revenue to grow 19.5% year on year to $2.76 billion, a reversal from the 24.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.95 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Analog Devices has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.7% on average. Looking at Analog Devices's peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Impinj's revenues decreased 4.5% year on year, beating analysts' expectations by 4.3%, and Universal Display reported revenues up 8.4%, topping estimates by 6.1%. Impinj traded up 26.2% following the results while Universal Display's stock price was unchanged. Read our full analysis of Impinj's results here and Universal Display's results here. Investors in the analog semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. Analog Devices is down 3.5% during the same time and is heading into earnings with an average analyst price target of $254.16 (compared to the current share price of $232.10). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
