Defendant Name: Gaia, Inc.

Defendant Type: Public Company
SIC Code: 7389
CUSIP: 36269P10

Initial Case Details

Legal Case Name In the Matter of Gaia, Inc. and Paul C. Tarell, Jr., CPA
First Document Date 23-May-2023
Initial Filing Format Administrative Action
File Number 3-21438
Allegation Type Issuer Reporting and Disclosure

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-11
Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)
Other
• Section 21F(h) Exchange Act; Rule 21F-17 Exchange Act
Additionally, Paul C. Tarell, Jr. is alleged to have caused Gaia, Inc.'s violation of Rule 12b-20 of the Exchange Act.
Paul C. Tarell, Jr. is alleged to have caused Gaia, Inc.'s violation of Sec 13(a) of the Exchange Act.
Paul C. Tarell, Jr. is alleged to have caused Gaia, Inc.'s violation of Rule 13a-11 of the Exchange Act.
Paul C. Tarell, Jr. is alleged to have caused Gaia, Inc.'s violation of Sec 17(a)(2) of the Securities Act.
Paul C. Tarell, Jr. is alleged to have caused Gaia, Inc.'s violation of Sec 17(a)(3) of the Securities Act.

Resolutions

First Resolution Date 23-May-2023
Headline Total Penalty and Disgorgement $2,000,000

Related Documents:

33-11196 23-May-2023 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
On May 23, 2023, the SEC instituted settled cease-and-desist proceedings against Gaia, Inc. and Paul C. Tarell, Jr., CPA, stating: "Gaia overstated the number of paying subscribers for the first quarter of 2019 in an earnings call and a Form 8-K, allowing the company to hit a previously disclosed estimate. . . . Gaia also violated the anti-retaliation provisions of Section 21F(h) of the Exchange Act when it retaliated against a whistleblower who reported the subscriber count issue both internally to Gaia management and separately to the Commission . . . Finally, from July 2018 through August 2021, Gaia violated Exchange Act Rule 21F-17 when Gaia included language in 23 employee severance agreements that required employees to waive their rights to receive monetary incentives intended to encourage individuals to communicate directly with the Commission staff about possible securities law violations."
33-11196-s 23-May-2023 Administrative Summary
SEC Charges Internet Streaming Company for Overstating Paying Subscribers and Violating the Whistleblower Protection Provisions
On May 23, 2023, the SEC "announced settled charges against Colorado-based Gaia, Inc. for overstating the number of the company's paying subscribers, and Gaia's CFO, Paul C. Tarell, Jr., for causing Gaia's overstatement. The SEC also charged Gaia with retaliating against a whistleblower and impeding former employees from communicating with the Commission about potential securities law violations."

Other Defendants in Action:

Paul C. Tarell, Jr.