New owner files lawsuit against former company executives; SEC charges former CEO
By: Stephanie Ramirez
Washington DC, USA - June 25, 2018: US Securities and Exchange Commission building exterior. The U.S. Securities and Exchange Commission or SEC enforces the federal securities laws
NewAge, a Utah-based health and wellness direct seller, has endured a turbulent year as bankruptcy filings, lawsuits and regulatory scrutiny have plagued the company over the past several months.
The company was recently sold to a “stalking horse” bidder for $28 million. The U.S. bankruptcy court approved the sale in late September 2022. However, just days after taking ownership, the new owner of NewAge hit former executives of the company with a lawsuit outlining a myriad of grievances.
The new owner, DIP Financing LLC, whose only known representative is John Wadsworth, provided the sole bid to purchase NewAge at a price grossly insufficient to allow for any sort of recovery for equity holders or creditor claims.