In a significant development in DailyGobble, Inc. v. Amit Jain, et al., the Los Angeles Superior Court has denied summary judgment for all defendants, allowing DailyGobble’s fraud claims to proceed to trial. LTL Attorneys represents DailyGobble, Inc., a minority shareholder of tech startup Bridg, Inc., who alleges it was defrauded into selling its stock at an artificially low price. According to the complaint, Bridg’s CEO, Amit Jain, privately negotiated an acquisition of the company at $9.00 per share while convincing DailyGobble to sell its shares for only $0.725 per share – falsely claiming that $0.75 was a fair value. Just months after DailyGobble sold its ~850,000 shares to a shell entity controlled by an associate of Jain, Bridg was acquired for a price more than 1,200% higher than what DailyGobble received.
The defendants moved for summary judgment, arguing (among other things) a lack of direct dealings or “privity” with DailyGobble. In a detailed final ruling issued June 13, 2024, Judge Randolph Hammock sided with DailyGobble’s position, finding triable issues of fact on the fraud and insider trading claims. This outcome validates DailyGobble’s theory that Jain used intermediaries to conceal his involvement and fiduciary duties, and that insider self-dealing can give rise to liability even absent direct contractual privity. The Court’s decision allows DailyGobble to present its case to a jury, where it will seek to recover the true value of its shares and pursue punitive damages for the alleged fraud. LTL Attorneys is pleased that the Court recognized the substantial evidence supporting our client’s claims, moving this high-value corporate fraud lawsuit one step closer to justice.