NEW YORK, Jan. 17, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential misconduct at National Beverage Corp. ("National Beverage" or the "Company") (NASDAQ: FIZZ).
The investigation focuses on whether the Company's Board of Directors and/or its officers committed mismanagement and breached their fiduciary duties. On September 28, 2016, Glaucus Research Group published a report on the Company alleging, among other things, that: (i) a complaint filed by a former attorney for Nick Caporella, National Beverage's CEO and Chairman, alleged that Caporella "admitted to manipulating [the Company's] earnings using a 'little jewel box' and by directing his son to create fake invoices"; (ii) "records produced in a 2014 litigation indicate that Caporella refused to allow a potential acquirer to perform adequate due diligence of the Company, which appears to be a contributing factor in the failure of the deal"; (iii) the Company's CEO and CFO "are not paid or directly employed by [National Beverage]. Rather, they are compensated by a privately held company, Corporate Management Advisors, ('CMA'), owned by the CEO"; (iv) "a complaint brought by [National Beverage's] former marketing director for one of its premier brands alleges that he was instructed to set up a corporate entity in order to be paid as an independent contractor"; (v) a "plaintiff alleged that a [Company] employee was physically present at, operated, directed and managed an independent distributor not listed as a subsidiary or related party in any of the Company's filings"; (vi) "Testimony from a 2014 deposition indicates that an employee received a 'stock gift' of 150,000 shares (and a cash payment to cover the attendant taxes) from [National Beverage's] CEO and majority shareholder even though such a stock transfer was never reflected in the Company's SEC filings"; and (vii) "Former Company counsel (and convicted criminal) Scott Rothstein testified that he and former [National Beverage] general counsel 'fudged facts' on behalf of [National Beverage] in a previous litigation." As a result of the foregoing, National Beverage is currently facing a securities class action lawsuit.