INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of NewAge, Inc. (NASDAQ: NBEV) (OTC: NBEVQ) Shareholders
NEWTOWN, PA, January 4, 2023 — The law firm of Edelson Lechtzin LLP is investigating securities fraud and breach of fiduciary duty claims on behalf of purchasers and holders of NewAge, Inc. (“NewAge” or the “Company”) (NASDAQ: NBEV) (OTC: NBEVQ) common stock.
Investors who purchased NewAge, Inc. common stock between January 18, 2018, and October 18, 2022, inclusive (the “Class Period”) may move the U.S. District Court for the District of Colorado to appoint them as lead plaintiff, no later than February 6, 2023. Current holders of NewAge stock may pursue corporate governance reforms. Investors who wish to discuss NewAge securities should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on NewAge, Inc.
Founded in 2007 and headquartered in Midvale, Utah, NewAge bills itself as a “purpose-driven” company dedicated to “empowering people to build a healthier world.” NewAge commercializes a portfolio of organic and healthy products worldwide primarily through a direct-to-consumer (D2C) route to market distribution system across more than 50 countries.
The Securities Fraud Claims
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically: (i) Defendants had no relationship with the military or FamilyMart; (ii) Defendants overstated the business agreements that they did have; (iii) the Company never produced or sold a proprietary CBD beverage; and (iv) the Company lacked adequate internal controls. As a result, the Company had a heightened risk of regulatory scrutiny.
On October 19, 2022, the SEC announced that it had instituted cease-and deist proceedings against NewAge. In anticipation of these proceedings, NewAge submitted a settlement offer, which the SEC accepted. The next day, NewAge stock plummeted from an opening price of $0.175 per share to $0.0013 per share (93%).
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Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.