NewAge's Bankruptcy Just Got a Lot Messier
A newly filed lawsuit reveals what really happened to NewAge, the multi-level marketing company that once pulled in $500 million annually. The culprits, according to court documents: the company's own former executives, accused of sabotage, extortion, and breach of contract.
John R. Wadsworth acquired NewAge through a purchase agreement in August, with final approval coming in October. His first move? Sue the people who ran it into the ground. Lawrence Perkins, NewAge's Chief Restructuring Officer, filed the lawsuit on October 7th.
The defendants include Frederick "Fred" Cooper, a former NewAge director and co-majority shareholder before the Ariix merger; Mark Wilson, NewAge's president and co-majority shareholder; Brent Willis, NewAge's CEO; and Kwikclick, a Delaware corporation.
According to the complaint, it's a brazen scheme. After NewAge acquired Ariix in 2020, the defendants failed to protect Ariix's assets and allegedly concealed massive liabilities. They violated the terms of the acquisition agreement, plain and simple.
Cooper emerges from the lawsuit documents as the real problem. Despite holding no official executive title, he acted like he ran the place. Ariix's legacy employees treated him as the de facto boss. Cooper showed up constantly in the corporate office, called himself Chairman of the Board at speaking engagements with Brand Partners, and charged NewAge for those appearances.
The smoking gun centers on proprietary software called ICONN. Ariix had developed it in-house. In June 2020, NewAge terminated Wenhan Zhang, who was Ariix's Chief Information Officer. Zhang then landed a new job at Kwikclick as CIO.
Here's where it gets dirty: NewAge kept paying Zhang's salary even after firing him. The lawsuit alleges Cooper directed the company to do this specifically to benefit his own company, Kwikclick. Why? Because Zhang had a complete copy of ICONN in his hands.
That wasn't all. Cooper ordered Ariix's software development team in China to dedicate significant time and resources to Kwikclick's projects while still employed by Ariix. NewAge is essentially claiming Cooper used Ariix as a free contractor for his competing business.
The defendants' behavior tanked a company that once dominated the MLM space. NewAge now faces bankruptcy. Wadsworth and Perkins want the courts to hold the former executives accountable and recover damages for the corporate sabotage that destroyed shareholder value.
The case exposes how insiders with deep knowledge of a company's operations and assets can systematically strip value while maintaining the appearance of legitimacy. For NewAge investors and employees, it's a cautionary tale about trusting executives who refuse to let go of power.
🤖 Quick Answer
What allegations did the lawsuit against NewAge's former executives reveal?The lawsuit, filed in October by Chief Restructuring Officer Lawrence Perkins, accused former executives including CEO Brent Willis, President Mark Wilson, and Director Frederick Cooper of sabotage, extortion, and breach of contract. The claims emerged following John R. Wadsworth's acquisition of the multi-level marketing company, which previously generated $500 million annually before its financial decline.
Who were the primary defendants in the NewAge bankruptcy litigation?
The defendants included Frederick "Fred" Cooper, former NewAge director and co-majority shareholder; Mark Wilson, NewAge's president and co-majority shareholder; and Brent Willis, NewAge's CEO. These individuals were accused of orchestrating actions that contributed to the company's financial deterioration and subsequent bankruptcy proceedings.
When did the NewAge acquisition and subsequent lawsuit occur?
John R. Wad
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