The Officers and Directors of NewAge, In. (NBEVQ) Caused the Company to Issue False and Misleading Statements Regarding its Business Prospects
A shareholder filed a class action on behalf of all investors who purchased NewAge, Inc. (OTC: NBEVQ) securities between January 18, 2018 and October 18, 2022, for violations of the Securities Exchange Act of 1934. NewAge purports to produce and sell various beverages and other health products.
According to the complaint, during the class period, defendants made a series of false and misleading statements concerning distribution agreements and partnerships with the U.S. military, expanded distribution of products to “all major retailers throughout Canada…”, and agreements “with the largest food and beverage distributor in South Korea to expand to all major retail outlets throughout the country immediately.” Defendants also made misleading statements regarding testing and developing CBD-infused beverages. Finally, defendants made misleading statements regarding its distribution agreement with Walmart.
In December 2020, NewAge completed its acquisition of Ariix. Thereafter, it developed concerns that Ariix had violated the Foreign Corrupt Practices Act (“FCPA”). In August 2021, NewAge made a voluntary self-disclosure of suspected FCPA issues to the U.S. Department of Justice and the SEC. The Company further disclosed that as of June 30, 2021, a material weakness existed relating to the Company’s “failure to design and implement monitoring activities over the acquisition of Ariix that resulted in the ability to issue our consolidated financial statements [. . .].”
On January 10, 2022, NewAge announced defendant Brent Willis would resign as CEO, Director, and employee of the Company. NewAge announced it was filing for Chapter 11 bankruptcy relief on August 30, 2022. As a result, the Company’s stock stopped trading on September 8, 2022.
On October 18, 2022, the SEC announced it was taking legal action against defendant Willis as he engaged in a “multi-year fraud by disseminating numerous false and misleading press releases and making false public statements concerning NewAge’s business dealings, and aided and abetted NewAge’s disclosure of material information in violation of Regulation FD.”
What Now: Shareholders who acquired shares of NewAge, Inc. between January 18, 2018 and October 18, 2022, must file their papers to be appointed lead plaintiff for the class by February 6, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
