Eugene beer giant Ninkasi Holding Co. is under fire after a group of individual investors from California filed a $3 million lawsuit against Ninkasi and its business partner, Wings & Arrow, alleging misrepresentation of funds. The suit alleges funds raised for Great Frontier Holdings, which was supposed to be an umbrella company that owned smaller beverage brands around the Northwest, were really a disguised fundraiser for Ninkasi.
The plaintiffs in the case allege the securities they invested in were unregistered and offered and sold by means of material misrepresentations and omissions, and that, in reality, there was no merger between Ninkasi and Wings & Arrow to form Great Frontier.
The suit claims Ninkasi simply assumed the name Great Frontier and was given all of Wings & Arrow’s valuable assets, including rights to its flagship product, all of its employees, and all the funds received by investors. Before the merger, Wings & Arrow owed Ninkasi $1 million for brewing Wings & Arrow products in their facilities…