Whiskey empire Uncle Nearest faces allegations of $100 million lawsuit by its billion-dollar, black-owned brand
In a surprising turn of events, the fast-growing American whiskey brand, Uncle Nearest, has found itself embroiled in a legal battle. Farm Credit Mid-America, the primary lender, filed a lawsuit on July 28, 2025, alleging multiple breaches of contract and financial mismanagement.
The lawsuit accuses Uncle Nearest of loan defaults totaling over $108 million across various loan types, inaccurate reporting of barrel inventory (overstated by $21 million), unauthorized sales of whiskey barrels used as collateral, and the undisclosed discounting of future revenue streams to other parties. Additionally, the lender accuses the company of misusing loan proceeds—specifically, purchasing a $2.2 million home on Martha’s Vineyard through a non-borrowing entity and mortgaging it to a separate lender, which allegedly violates the original loan agreements.
The company is also accused of failing to meet financial covenants requiring a net income of at least $1 at the end of each calendar month and maintaining a net worth of $100 million throughout 2024. Due to these breaches and concerns over the company’s solvency and collateral security, Farm Credit Mid-America has requested the appointment of a court-appointed receiver to take over management of Uncle Nearest to protect its interests.
In response, Uncle Nearest acknowledges past loan repayments, including nearly $9 million in 2024 and a $7.5 million payment in 2025, but disputes allegations that corporate resources were used for personal benefit. The company's counsel has indicated that solvency is in question, and the court is focused on evaluating solvency and collateral adequacy when considering the receiver’s appointment.
The lawsuit threatens significant operational control changes for Uncle Nearest amid ongoing financial difficulties. However, Fawn Weaver, co-founder of Uncle Nearest, has emphasized that the team remains unshaken and unmoved. The Nearest Green Distillery and Uncle Nearest Premium Whiskey brand were launched by Weaver in 2017, and as of the information provided, there is no mention of a change in the ownership or management of Uncle Nearest.
Weaver has also called the lawsuit "inaccurate" and a "lie" in a recent Instagram video, stating that reports claiming she no longer owns Uncle Nearest are false. The legal action is currently being played out in federal court, with the court focused on evaluating the company's solvency and collateral adequacy before deciding on the appointment of a court-appointed receiver.
The founders of Uncle Nearest are accused of breaching contracts and mismanaging finances, with allegations including loan defaults, inaccurate reporting, unauthorized sales of whiskey barrels, and misuse of loan proceeds. In the midst of this legal dispute, the entrepreneurs behind the American whiskey brand, Fawn Weaver and the rest of Uncle Nearest's team, remain committed to the business they founded in 2017.
