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Black Rifle Coffee Sued for Stock Manipulation
Three months ago I wrote critically about $BRCC. I zoned in on its CFO, whose last role ended with him being sued for stock manipulation and lying to investors about the health of the business, as well as the CEO and co-founder for his role in propagating a toxic workplace environment for those on the content side of the business.

While the stock is down 50% since my short report detailing a $9.5 price target was published, the stock first soared to over $34 per share at its peak in March and April. According to an open letter and lawsuit from 1791 Management, this rise in the stock was done illegally and orchestrated by the company with ill intent for shareholders to line the pockets of insiders. The open letter specifically cites Iverson as potentially coming up with the idea:

"We would not be surprised if the original idea came from your CFO, Greg Iverson, who was the subject of a securities fraud class action lawsuit alleging he participated in "artificially inflating" Overstock's price while he was their CFO."

To those who did not research the company deeply, this would come as a surprise considering the sell-side analysts who initiated coverage around the de-SPAC claimed that the management team was "uncharacteristically seasoned for a new public company" as claimed by Roth Capital.

The management team may be uncharacteristically seasoned, but it seems to be in regards to ripping off investors rather than running a successful business.


You can read my original short report highlighting major issues here: https://dueyourdiligence.substack.com
dueyourdiligence.substack.com
Wall Street is Missing Black Rifle Coffee's Red Flags
Pump and dump schemes, restraining orders, and harassment accusations are the norm for this team

Strat Becker's avatar
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