When reports surfaced last week of Wake Up Now having gone bankrupt, one of the first things I did was check to see if anything official had been filed in court.

A search of Pacer turned up nothing, so I left it at that.

That WakeUpNow are effectively bankrupt remains in question, with the company thus far having failed to publicly issue a statement regarding most of their affiliates leaving and the lack of commission payments for months.

What has surfaced though is a lawsuit filed by WakeUpNow on January 27th, in Utah’s Fourth Judicial District Court.

Before we get into the lawsuit itself, I did some snooping around the Utah Courts websites and discovered they run their own records system. It’s called XChange and Utah charges $25 to set up an account and then $30 a month on a rolling subscription.

That’s just for access to search Utah’s records mind, with court document downloads incurring additional fees.

Needless to say I won’t be signing up anytime soon.

Thankfully a reader sent in Wake Up Now’s complaint, which is filed against former CEO Kirby Cochran, staff of Global Connection Network, Elaine Cochran (Wake Up Now’s lawyer until October 2014) and Juan Carlos Lozano.

Wake Up Now identify Lozano as

an individual residing in Mexico (who) has travelled to the U.S. multiple times (including Utah), committed acts in the U.S. and Mexico that adversely affect commerce (pertaining to Wake Up Now) within the United States.

In their lawsuit, Wake Up Now incorrectly allege that their affiliates are retail customers:

Wake Up Now makes its products available to retail customers, whom Wake Up Now categorizes as “insiders,” “preferred customers,” and “IBOs.”

The company states it ‘
sells a majority of its products via direct sales
‘.

Its beef with Kirby Cochran?

Kirby Cochran Gets His Nose Into The WUN Tent
(Ozedit: Yes, that’s the actual title used in the complaint)

In December 2010, Kirby Cochran, who previously had no involvement with Wake Up Now, learned through his brother Gary C. that the management of Wake Up Now was interested in going public.

Kirby Cochran, acting as a middle-man, orchestrated a going public shell merger wherein Wake Up Now, an operating Utah corporation, was acquired as a subsidiary by a Delaware publicly traded corporation, trading/ticker symbol “WORC”.

In connection with the merger, the Delaware publicly traded shell corporation parent changed its name to Wake Up Now, but kept its trading/ticker symbol WORC.

Wake Up Now later discovered that, near the time of the transaction, Kirby Cochran’s brother and co-defendant Gary C.
secretly purchased a large percentage of WORC’s public float.

Wake Up Now has also recently discovered that, at the time of the transaction, Kirby Cochran, who was not a licensed broker, was negotiating both sides of the deal.

He induced the public shell company to issue significant shares of stock to Wake Up Now founder Troy Muhlestein to close the acquisition, but then surreptitiousl

🤖 Quick Answer

What legal action did WakeUpNow initiate in January?
WakeUpNow filed a lawsuit on January 27th in Utah's Fourth Judicial District Court against Kirby Cochran for $70 million. The filing emerged amid reports of the company's financial difficulties, including failed commission payments to affiliates and mass departures of company members without official public statements.

What challenges emerged regarding WakeUpNow's financial status?
WakeUpNow's bankruptcy status remained unclear due to the absence of official court filings in federal records systems like Pacer. However, the company's inability to pay commissions for months and widespread affiliate departures indicated severe financial distress requiring investigation through state-level court systems.

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