Reuters

U.S. SEC sues company that markets beverages to women

A southern California company that sells beer, wine and bottled water targeting female customers has been sued by the U.S. Securities and Exchange Commission for allegedly defrauding investors out of millions of dollars. In a complaint filed on Tuesday, the SEC said SHE Beverage Co raised over $15 million from more than 2,000 investors in unregistered stock sales from 2017 to 2019 by falsely touting its business plans and promoting its successes. The SEC said the Lancaster, California-based company overstated revenue, spent only 2% of investor proceeds on beverage inventory instead of the promised 30% and made bogus claims it had received takeover bids as high as $500 million.

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