NASDAQ:GAIA Investor Alert: Lawsuit Alleges False and Misleading Statements by Gaia, Inc.
A lawsuit was filed on behalf of investors in Gaia, Inc. (NASDAQ:GAIA) shares over alleged securities laws violations.
San Diego, CA -- (SBWire) -- 01/20/2023 --An investor, who purchased shares of Gaia, Inc. (NASDAQ: GAIA), filed a lawsuit i over alleged violations of Federal Securities Laws by Gaia, Inc. in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Gaia, Inc. (NASDAQ: GAIA) have certain options and for certain investors are short and strict deadlines running. Deadline: February 21, 2023. NASDAQ: GAIA investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Louisville, CO based Gaia, Inc. operates a digital video subscription service and on-line community for underserved member base in the United States, Canada, Australia, and internationally.On November 7, 2022, Gaia, Inc. revealed "an investigation by the staff of the Denver Regional Office (the 'Staff') of the U.S. Securities and Exchange Commission (the 'SEC')" which began in June 2020. According to the Company, "[i]n September 2022, Gaia and Gaia's Chief Financial Officer ('CFO') reached an agreement in principle with the Staff on a framework for a complete resolution of the investigation." Further, according to the Company, "[t]he agreement in principle contemplates that Gaia would consent, without admitting or denying any findings, to the entry of an administrative order: (1) finding that Gaia (a) misstated in its April 29, 2019 earnings release and earnings call the number of paying subscribers for the period ending March 31, 2019, … and (b) failed to comply with SEC whistleblower protection requirements with respect to the termination of one employee and the language used in severance agreements for other employees; and (2) requiring Gaia to pay a total civil monetary penalty of $2,000[,000] over a one-year period for these violations. At the same time, the CFO would consent, without admitting or denying any findings, to the entry of an administrative order: (1) finding that the CFO caused Gaia's misstatements in the April 29, 2019 earnings release and earnings call that is described above; and (2) requiring the CFO to pay a civil monetary penalty of $50[,000]." The Company also stated "[t]here can be no assurance that the contemplated settlement will be finalized and approved."
The plaintiff claims that between December 26, 2017 and November 7, 2022, the defendants made false and/or misleading statements and/or failed to disclose, among other things, that the Company's first quarter 2019 subscriber count was overstated, that the Company lacked adequate internal controls, that as a result, defendants had a heightened risk of regularly scrutiny and ultimately subject to an SEC investigation and action, and that as a result of the foregoing, defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Those who purchased shares of Gaia, Inc. (NASDAQ: GAIA) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
Media Relations Contact
Shareholders Foundation, Inc.
View this press release online at: http://rwire.com/1369529