Massive Fraud Lawsuit Names 19 Executives in NewAge Collapse
A liquidator for NewAge is coming after the company's former executive team with a sprawling lawsuit alleging they destroyed shareholder value through reckless mismanagement and outright fraud.
The May 31st complaint names 19 defendants, accusing them of manipulating the company's stock price, doling out unjustified compensation, and abandoning their fiduciary duties. The liquidator claims the defendants inflicted "substantial harm" through "grossly negligent, reckless, and/or willful" conduct.
Brent Willis, who ran NewAge as CEO from April 2016 to January 2022, anchored the scheme. The complaint alleges Willis led a coordinated campaign of false and misleading public statements designed to artificially prop up the company's share price between 2017 and 2020. He's already under fire from the SEC for the same conduct.
The roster of accused executives reads like a corporate organization chart. It includes Mark Wilson, who became NewAge President in November 2020; Gregory Gould, CFO from October 2018 to July 2021; and four board members—Timothy Haas, Reginald Kapteyn, Alicia Syrett, and Amy Kuzdowicz—all serving during the fraud period.
But the lawsuit reaches deeper into the company's murky corners. It targets Frederick W. Cooper, a majority shareholder of Ariix before NewAge acquired the company, and names multiple family investment vehicles tied to executives. Cooper also launched KwikClick, a publicly traded marketing company he recently rebranded as "Kwik." The lawsuit drags in KwikClick's entire leadership structure, including CIO WenHang Zhang, CFO Jeffrey Yates, and Secretary Brady Cooper.
The complaint extends to several former CFOs who cycled through the role—Chuck Ence, who served from October 2016 to August 2018, and Kevin Manion, who held the position from July 2021 to July 2022. Carl Aure, the company's Chief Administrative Officer and senior vice president from December 2018 to October 2021, also faces allegations.
Even NewAge's interim leadership isn't spared. Ed Brennan, who became board chairman in January 2022 and interim CEO in March 2022, is named as a defendant. So is Greg Fea, who chaired the board from 2018 to 2022.
This lawsuit mirrors one brought against some of the same defendants by NewAge's Chief Restructuring Officer last October, suggesting a pattern of alleged misconduct that multiple investigations have now flagged. The defendants' alleged focus on stock manipulation and excessive compensation payouts raises questions about how many red flags were ignored as the company unraveled.
With the liquidator pursuing these claims aggressively, expect to see whether courts will hold this executive team accountable for the financial devastation shareholders claim they caused.
🤖 Quick Answer
Who is being sued in the NewAge liquidation case?A liquidator is suing 19 former NewAge executives, including ex-CEO Brent Willis, alleging they engaged in stock price manipulation, unjustified compensation disbursement, and breach of fiduciary duties that caused substantial shareholder value destruction through grossly negligent and willful misconduct.
What are the main allegations against NewAge's leadership?
The May 31st complaint charges defendants with reckless mismanagement and fraud, including coordinated campaigns of false public statements designed to artificially inflate stock prices, improper executive compensation distribution, and systematic abandonment of fiduciary responsibilities.
What time period did Brent Willis lead NewAge as CEO?
Brent Willis served as Chief Executive Officer of NewAge from April 2016 until January 2022, during which period the complaint alleges he orchestrated the central
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