SEC Investigation into Misstatements & Whistleblower-protection Violations

Both parties are exchanging evidence and gathering information for the case.

D. Colorado

Court

1:22-cv-03267

Case number

12/26/2017

Class period Start

11/07/2022

Class period End

On November 7, 2022, Gaia within the Q3 report disclosed a $2.0 million accrual for the anticipated settlement related to the SEC investigation.

Later the WSJ reported that the Company would pay a civil penalty of $2 million to settle SEC allegations that it misstated the number of paying subscribers for the quarter that ended March 31, 2019.
The settlement also addressed allegations that the Company’s termination of one employee and the language used in its severance agreements for other employees violated the SEC’s whistleblower protection requirements, according to the filing.
WSJ said Gaia’s CFO, Paul Tarell, agreed to pay an additional $50,000 to settle allegations he caused the company’s misstatements in the 2019 quarterly earnings, without admitting or denying the allegations.

Taking all allegations and the SEC involvement into account, current and former Investors have all reasons to suspect that their rights were grossly violated.

Case Status

Case Discovery

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Fraud,

Failure to Disclose,

Malpractice,

Negligence,

Breach of Fiduciary duty,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

11/07/2022

Filing date

12/20/2022