NewAge (NBEV) SEC Investigation Case

The defendant has requested the court to dismiss the case.

D. Colorado

Court

1:22-cv-03161

Case number

01/18/2018

Class period Start

10/18/2022

Class period End

On October 18, 2022, the SEC announced that it was taking legal action against NewAge’s former CEO, Brent Willis. The SEC alleged that 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”.

The allegations focused on numerous false statements made by NewAge’s CEO and other NewAge officers stating that the Company, among other things, had developed a line of CBD-infused beverages, had a business relationship with the U.S. military, and distribution agreements with various major retailers around the world.

The SEC followed up on October 19, 2022, by announcing that it had instituted legal proceedings against NewAge, enjoining it from further violations of the relevant securities laws. In anticipation of these proceedings, NewAge submitted a settlement offer, which the SEC has accepted.

On all this news, NewAge’s stock plummeted 93% on October 20, 2022, seriously damaging investors.

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

10/19/2022

Filing date

12/07/2022

Judge

Hon. Daniel D. Domenico