Investigation launched into Gaia, Inc. by former Louisiana Attorney General
- Kahn Swick & Foti, LLC has initiated an investigation into Gaia, Inc. following SEC findings of misstated subscriber numbers and whistleblower protection violations.
- Gaia is currently facing a securities class action lawsuit related to these disclosures, which remains unresolved.
- The investigation seeks to determine if Gaia's leadership breached fiduciary duties or violated laws, highlighting the importance of corporate accountability.
On September 20, 2024, Kahn Swick & Foti, LLC, led by former Louisiana Attorney General Charles C. Foti, Jr., announced an investigation into Gaia, Inc. This follows a series of legal troubles for the company, including a request from the U.S. Securities and Exchange Commission (SEC) for voluntary document production in June 2020. The SEC found that Gaia had misstated subscriber numbers in its April 2019 earnings release and failed to comply with whistleblower protection laws, resulting in a $2 million civil penalty. Subsequently, Gaia and some of its executives faced a securities class action lawsuit for allegedly failing to disclose critical information during the class period, which is still ongoing. The investigation by KSF aims to determine whether Gaia's officers and directors breached their fiduciary duties to shareholders or violated any state or federal laws. The firm is actively seeking information from individuals who may have insights into Gaia's operations or who have held shares for an extended period. This outreach is part of KSF's commitment to ensuring that shareholders are informed of their legal rights and options. As the investigation unfolds, the implications for Gaia, Inc. could be significant, potentially affecting its reputation and financial standing. The outcome may also influence the broader landscape of corporate governance and accountability in the securities market.