Gaia, Inc. (NASDAQ:GAIA)
NEW YORK, NY – December 28, 2022 – Wolf Haldenstein Adler Freeman & Herz LLP reminds investors of the upcoming February 21, 2023 deadline to file a lead plaintiff motion in the class action filed in the United States District Court for the District of Colorado on behalf of investors who purchased or otherwise acquired shares of Gaia, Inc. (“Gaia” or the “Company”) (NASDAQ:GAIA) between December 26, 2017 and November 7, 2022, both dates inclusive (the “Class Period”).
All investors who purchased the shares and incurred losses are advised to contact the firm immediately at firstname.lastname@example.org or (800) 575-0735 or (212) 545-4774.
If you have incurred losses, you may, no later than February 21, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
Gaia produces and sells subscriptions to its web-based content, which consists of yoga and meditation, among other topics.
On November 6, 2017, Gaia disseminated a press release announcing results for the third quarter of 2017. In this release, the Company purported to have achieved a paying subscriber count of 311,000 on September 30, 2017, up from 180,000 one year prior, or a 73% subscriber growth rate from 46% in the third quarter of 2016. Additionally, the Company filed its quarterly report on November 7, 2017 for the period ended September 30, 2017. The Q3 2017 10-Q did not reveal any internal control weaknesses, instead stating that “our management has concluded that those disclosure controls and procedures are effective.”
On April 29, 2019, the Company issued a press release falsely announcing “34% subscriber growth” for Q1 2019, an increase to 562,000 paying subscribers from 418,200 on March 31, 2018. The Company reported that this subscriber growth led to a 36% increase in revenues. Again, the accompanying 10-Q did not reveal any internal control weaknesses and instead proclaimed the controls’ effectiveness. Very similar attestations were made in subsequent filings through early 2021.
On Sunday, February 14, 2021, Business Insider released an article called “Gaia was a wildly popular yoga brand. Now it’s a publicly traded Netflix rival pushing conspiracy theories while employees fear the CEO is invading their dreams,” revealing internal and management control weaknesses.
Business Insider published a follow up article on February 17, 2021, called “Gaia, one of the world’s most popular yoga mats, has its roots in a conspiracy site that touts alien secrets and 9/11 theories” — raising further doubts about the legitimacy of management controls within the company.
These articles caused the price of the Company’s stock to fall from $9.82/share on February 12 to $9.62/share on February 17, 2021.
Again, on March 2, 2021, the Company’s 10-K attested to the efficacy and adequacy of the Company’s controls, revealing no weaknesses. These attestations again continued through August 1, 2022.
Finally, on November 7, 2022, the Company revealed for the first time an SEC proceeding relating to the Company overstating its subscriber count, revealing that it had been investigated by the SEC as early as June 2020, resulting in a consent order in September 2022 that would require among other things findings stating that Gaia misstated its earnings and failed to comply with whistleblower protection requirements along with a $2,000,000 fine for the company and a $50,000 fine for the CFO.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at email@example.com
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Tel: (800) 575-0735 or (212) 545-4774
Certification and Authorization Pursuant to Federal Securities Laws
Date of signing: 02/03/2023