NewAge settles Securities and Exchange Act violations with SEC
NewAge has settled violations of the Securities and Exchange Act with the SEC.
As per an October 19th order, NewAge consented to a cease and desist.
NewAge’s violations are tied to the actions of former CEO Brent David Willis (right), who the SEC separately sued on October 18th.
The linked article above covers in detail Willis’ lies, made across 2017 to 2019.
Long story short, Willis lied about distribution agreements pertaining to NewAge’s beverages, which benefited the company financially.
As a result of the conduct of Willis on behalf of (NewAge), (NewAge) violated … the Securities Act … and the Exchange Act.
There’s no monetary component to NewAge’s cease and desist, marking a distinction between NewAge as a company and Willis’ conduct.
In determining to accept the Offer, the Commission considered remedial steps taken by Respondent and cooperation afforded the Commission staff.
On that note and potentially in relation to the SEC’s litigation against Willis, NewAge’s cease and desist also sees them”agreeing to appear and be interviewed by Commission staff”. This includes depositions and subpoenas – and applies to NewAge staff and “third-party consultants within its control”.
How or even whether this comes into play in Willis’ lawsuit remains to be seen.
NewAge filed for Chapter 11 bankruptcy in September 2022. The company is expected to emerge from bankruptcy at some point, under the new ownership of John R. Wadsworth.
NewAge operates the MLM companies Noni by NewAge and Ariix.
I own over 500,000 shares will shareholders be protected ?
Protected from what?
Personally I have no idea. You’d have to ask NewAge.