A Federal Judge issued a gag order for the $100 million lawsuit between Uncle Nearest and Farm Credit Mid-America, according to The Tullahoma News on Thursday. Judge Atchley explained his decision to issue the order was so the case was not “tried in the media,” according to the outlet.
The Tullahoma News reported that the plaintiff, Farm Credit Mid-America, requested the gag order after employees of the distillery — chiefly the company’s CEO, Fawn Weaver — shared her responses to the lawsuit and claims that Uncle Nearest defaulted on a loan and overvalued its inventory on her social pages.
Weaver is no stranger to promoting the Uncle Nearest brand via her socials. A major cornerstone of the brand’s success has been the narrative behind the whiskey, and Uncle Nearest’s exceptional marketing strategy.
Weaver herself has become a fixture closely linked to the brand and uses platforms like Instagram to offer glimpses into her daily life in addition to promoting Uncle Nearest’s products. The Uncle Nearest CEO and published author has noted in multiple interviews that transparency is important, so Weaver’s taking to social media in light of the recent legal filing seems in alignment with both Uncle Nearest and her brand.
A Violation of First Amendment Rights?
Needless to say, when the news of the lawsuit’s filing made headlines, Weaver shared on her Instagram that being on the receiving end of potential “hit pieces” was “kinda cool.”
“Since so many eyes are on me right now, I’ll take a page from Winston Churchill and Warren Buffett: never waste a good crisis. So let me run some stats for you, then I’ve got a request. Uncle Nearest is the ONLY independent whiskey brand in the top 50 and one of the few spirits brands period seeing double-digit growth in revenue, volume and velocity,” Weaver shared.
The CEO went on to share that certain states, like Ohio, witnessed growth of the Uncle Nearest brand at 38%. The brand experienced 33% growth in Texas and 50% in the month of July.
“In a backdrop of industry decline and disarray, Uncle Nearest is THE shining star, growing against impossible odds,” Weaver expressed, before encouraging her followers to “clear the shelves” and support Uncle Nearest whenever they could.
Eight days after Weaver posted the video on August 3, the federal judge reluctantly issued the gag order. His hesitancy stemmed from a fear that he might be violating First Amendment rights, according to the Tullahoma News.
The judge issued more unwelcome news for the Uncle Nearest team, and ordered a freeze on the movement of assets while he deliberated on a decision to appoint a receiver to run the brand.
The Spirits Business reported that Keith Weaver, Fawn’s husband, claimed such a move would be “catastrophic” for Uncle Nearest and that Fawn Weaver is the “face of the brand.” Such a loss would “injure the company — 100%.”
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