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Uncle Nearest, Founders Hit With $100 Million Lawsuit
A Louisville-based lender is suing Uncle Nearest Tennessee Whiskey and founders Fawn and Keith Weaver for more than $100 million, accusing the defendants of defaulting on loans and mis-stating the value of barrels in its inventory. Farm Credit Mid-America is Uncle Nearest’s primary lender, with a total of seven loans since 2022.
According to the court filing, Uncle Nearest and the Weavers used proceeds from one of the loans to buy a house in Martha’s Vineyard, Massachusetts, then mortgaged the property to another lender in violation of the original loan agreement. In addition, the defendants are accused of over-stating the value of barrel inventory used as collateral for the loans by $21 million. The lender has asked the U.S. District Court for the Eastern District of Tennessee to appoint a receiver to protect its interests in the Shelbyville, Kentucky distillery, and a hearing is scheduled for later this week in Knoxville.
In their response to the lawsuit, the Weavers deny the allegations and call the lender’s claims “demonstrably false.” Keith Weaver told the Lynchburg Times that “this suit contains a host of inaccurate claims against the company such as the suggestion that we have not paid the bank in over a year, which is just not true,” Keith Weaver stated. “They also suggest that we’re using or have used corporate resources for personal benefit in the form of the Martha’s Vineyard house, which is also not true.” The Weavers also blame Uncle Nearest’s former chief financial officer for the mis-statement of barrel inventory value.
This story will be updated with additional information following the hearing. The original court filing can be found at this link courtesy of the Tullahoma News, and the Weavers’ response can be found here. WhiskyCast has reached out to the Weavers for their side of the story.
Editor’s Note: As with all civil cases, court filings only present one side’s version of the case, and should not be taken as factual until proven in a court of law.
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