Defendant Name:
Gaia, Inc.
Defendant Type:
Public Company
SIC Code:
7389
CUSIP:
36269P10
Document Reference:
33-11196
Document Details
Legal Case Name
In the Matter of Gaia, Inc. and Paul C. Tarell, Jr., CPA
Document Name
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
Document Date
23-May-2023
Document Format
Administrative Proceeding
Allegation Type
Issuer Reporting and Disclosure
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Undertakings: "Gaia has revised its form severance agreement"
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:
Civil Penalty
Individual:
$2,000,000.00
Shared:
Other Defendants in Action:
