Gummy Retailer Goli Sued By Manufacturer Over Alleged Fraud

A gummy supplement manufacturer, Better Nutritionals, sued retailer Goli Nutrition Inc. for leaving the company in “a desperate position” and allegedly orchestrating a fraudulent stock swap transaction.

The lawsuit, filed Monday in the US District Court for the Central District of California, accuses Goli and its co-founders of orchestrating a fraudulent stock swap where Goli obtained a 25% interest in Better Nutritionals in exchange for giving the manufacturer a 3% interest in Goli.

The interests were “fraudulently claimed to be equal in value,” but Goli knew that its interest in Better Nutritionals was substantially more valuable than the latter’s interest ...