The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Colorado on behalf of those who acquired Gaia, Inc. (“Gaia” or the “Company”) (NASDAQ: GAIA) securities between December 26, 2017 through November 7, 2022 (the “Class Period”). Investors have until January 21, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Gaia operates as a global digital video subscription services company.
On Sunday, February 14, 2021, Business Insider released an article that revealed internal and management control weaknesses—particularly the domineering and controlling nature of Rysavy and Tarell and the poor tone at the top within the Company. On February 17, 2021, Business Insider published a follow up article that raised further doubts about the legitimacy of management controls within the company. On this news, the price of Gaia’s stocks declined by $0.20 per share, or approximately 2.03%, from $9.82 per share on February 12, 2022 to close at $9.62 on February 17, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (1) the Company’s first quarter 2019 subscriber count was overstated; (2) the Company lacked adequate internal controls; (3) as a result, defendants had a heightened risk of scrutiny and were ultimately subject to an SEC investigation and action; and (4) 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.