PUBLISHED ONJanuary 02, 2023 12:09 AM
NEW YORK, Jan. 01, 2023 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of NewAge, Inc. (“NewAge” or the “Company”) (OTCMKTS: NBEVQ). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether NewAge and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On January 10, 2022, NewAge announced in a filing with the U.S. Securities and Exchange Commission (“SEC”) that the Company’s Board Chief Executive Officer (“CEO”) Brent Willis had agreed that Willis would “resign as [CEO], Director, and employee of the Company, effective immediately. The Company and Mr. Willis will determine the terms of his departure at a future date. [. . .] Ed Brennan will provide additional guidance and direction to the senior management team [. . .].”
On this news, NewAge’s stock price fell $0.09 per share, or 8.42%, over the following two trading sessions, to close at $0.925 per share on January 12, 2022. On May 17, 2022, NewAge disclosed receipt of a late notice from The Nasdaq Stock Market LLC (“Nasdaq”) regarding the filing of its Form 10-Q.
On this news, NewAge’s stock price fell $0.06 per share, or 14.52%, to close at $0.359 per share on May 18, 2022.
On June 8, 2022, the Company announced that it was undertaking a review of “strategic alternatives,” including “available financing alternatives, a potential financial restructuring, merger, sale or other strategic transaction.”
The next day, NewAge’s share price fell $0.05 per share, or 11.83%, to close at $0.3703 per share on June 9, 2022. On August 30, 2022, NewAge announced that it was filing for Chapter 11 bankruptcy relief. Further, on August 31, 2022, The Wall Street Journal published an article entitled “New Age Says Cost of Internal Probe Contributed to Bankruptcy,” which highlighted the fact that in its Chapter 11 disclosure, NewAge admitted that it had conducted an expensive internal investigation into the Company’s Ariix business for suspected violations of the FCPA.
The next day, the stock closed down 39%, from an opening price of $0.2016 per share to $0.1222 per share.
On September 2, 2022, NewAge announced in an SEC filing that it had received writing notice from The Nasdaq Stock Market LLC (“Nasdaq”) that, as a result of its filing for protection under Chapter 11 of the U.S. Bankruptcy Code, Nasdaq had determined that NewAge’s securities would be delisted from the Nasdaq stock exchange, beginning on September 8, 2022.
On this news, NewAge’s stock price fell $0.02 per share, or 15.54%, to close at $0.125 per share on September 6, 2022.
Finally, on October 18, 2022, the SEC announced that it was taking legal action against former CEO Willis. Specifically, the SEC alleged that Willis had 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,” and accordingly charged him under Section 10(b) and corresponding Rule 10b-5 of the Exchange Act, Section 17(a) of the Securities Act, and with aiding and abetting NewAge’s violations of Section 13(a) of the Exchange Act and Regulation FD.
On October 19, 2022, the SEC announced that it had instituted cease-and-desist proceedings against NewAge pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, enjoining NewAge from further violations of the Securities and Exchange Acts, and rules and regulations promulgated under them.
In anticipation of these proceedings, NewAge’s stock price fell 95%, to close at $0.0013 per share on October 20, 2022.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
