Uncle Nearest Whiskey Lawsuit, Lied About $21M in Barrels, Bought Martha’s Vineyard—Founders Lose Company
The Uncle Nearest whiskey lawsuit is NOT a consumer class action. It’s a $108 million loan default case where Uncle Nearest allegedly lied about having 77,000 whiskey barrels—they were $21 million short. The company used loan money to buy a $2.2M Martha’s Vineyard property through a shell LLC, violating loan terms. A federal judge stripped founders Fawn and Keith Weaver of control in August 2025. Consumers who bought Uncle Nearest whiskey are NOT affected—there’s no product defect, no recall, no settlement, and no consumer compensation available.
Latest Update (January 2026): No significant developments have been reported since the receiver’s October 2025 report. The receivership process continues with expected resolution by mid-2026.
What the Uncle Nearest Lawsuit Is Actually About
This is a commercial lending dispute, not a consumer product lawsuit.
Farm Credit Mid-America, a Kentucky-based agricultural financial company, sued Uncle Nearest Inc., Nearest Green Distillery, and founders Fawn and Keith Weaver for defaulting on over $108 million in loans.
The lawsuit was filed in U.S. District Court for the Eastern District of Tennessee on July 28, 2025.
What the lender alleges:
- Uncle Nearest stopped making loan payments as early as January 2, 2024
- The company owes $108,245,828.22 including unpaid principal and interest
- Uncle Nearest overstated barrel inventory values by $21 million to secure larger loans
- The company sold whiskey barrels used as collateral to pay other debts
- Loan proceeds were used to buy a $2.2 million Martha’s Vineyard property through a separate LLC
- The company violated financial covenants requiring $1 million net income monthly and $100 million net worth
No Consumer Claims—Whiskey Buyers Are Not Affected
Important: If you bought Uncle Nearest whiskey, this lawsuit does not affect you.
There is no:
- Product defect claim
- Consumer fraud allegation
- False advertising lawsuit
- Class action on behalf of whiskey buyers
- Product recall
- Settlement for consumers
- Compensation available to people who purchased Uncle Nearest whiskey
The whiskey itself is not alleged to be defective, mislabeled, or harmful. This is purely a business debt dispute between the company and its lender.
Company Now Under Court-Appointed Receiver
On August 15, 2025, federal Judge Charles Atchley Jr. granted Farm Credit’s motion and placed Uncle Nearest under receivership.
Kevin Larin was initially proposed as receiver. However, court filings indicate Phillip G. Young Jr. was ultimately appointed to take control of the company.
What receivership means:
- Founders Fawn and Keith Weaver were removed from operational control
- The receiver manages the company’s day-to-day operations
- The receiver’s job is to protect the lender’s collateral and stabilize the business
- The Weavers can remain involved in marketing to protect brand reputation
- A gag order prevents public statements from both parties
The $21 Million Barrel Inventory Discrepancy
Farm Credit claims Uncle Nearest provided “apparently inaccurate Borrowing Base reports” about whiskey barrel inventory.
The company allegedly reported owning 77,000 barrels of whiskey when applying for loans. These barrels served as collateral—if Uncle Nearest defaulted, the lender could seize and sell the barrels to recover the debt.
During a collateral inspection in October 2024, Farm Credit discovered the company had $21 million fewer barrels than reported.
Uncle Nearest’s defense: They blame their former Chief Financial Officer, claiming he acted alone in overstating inventory between 2022 and 2023. The CFO has been terminated.
Uncle Nearest argues if fraud occurred, “it’s the fault of the navigator, not the captain.”
The Martha’s Vineyard Property Controversy
In March 2023, Uncle Nearest requested $2.3 million in additional loans to purchase a property described as a “brand-focused site to host events.”
Farm Credit alleges the property—located in Martha’s Vineyard—was purchased through a separate LLC called UN HOUSE MV LLC, which then mortgaged the property to a different lender.
This allegedly violated the original loan agreements because the property was placed beyond Farm Credit’s reach as collateral.
What Uncle Nearest Says in Response
Fawn Weaver responded on Instagram after the lawsuit was filed, calling the allegations “salacious and inaccurate.”
She claimed Uncle Nearest experienced double-digit growth in 2024:
- 44% year-over-year growth in DMV (DC, Maryland, Virginia)
- 38% in Ohio
- 33% in Texas
- 49% in Georgia
Keith Weaver told The Tullahoma News the lawsuit contained “inaccurate claims” and the timing felt “purposeful.”
The Weavers filed an official response arguing Farm Credit was fully informed of the pause in loan payments.
Since the gag order was imposed in August 2025, public statements from both sides have ceased.
Receiver’s First Report: Company Has “Significant Value”
Court-appointed receiver Phillip G. Young Jr. filed his first quarterly report on October 1, 2025.
Key findings:
- Farm Credit Mid-America agreed to inject $2.5 million in short-term funding to cover overdue bills and professional fees
- 12 employees have been laid off as part of cost-cutting efforts
- Non-income-producing properties will be sold within the next quarter
- The company has “significant value” and can be reorganized as a going concern
- The core whiskey brand remains viable
The receivership process is expected to conclude by mid-2026 through either refinancing or other resolution.
Assets Being Sold to Stabilize Company
According to the Moore County Observer, Uncle Nearest is preparing to sell non-core assets including:
- French vineyards
- A Cognac château in France
- Other real estate holdings
The company secured a $20 million loan in July 2023 to expand into Cognac production. However, Farm Credit claims “any portion of the Cognac business is operational.”
Uncle Nearest has abandoned the cognac business because it lacks cash to bring the product to market.
Expansion of Receivership to Additional Entities
On September 30, 2025, Farm Credit filed a motion to expand the receivership to 11 additional entities they claim overlap with Uncle Nearest Inc.
Entities mentioned in the filing:
Grant Sidney Inc.: A privately held investment company founded by Fawn Weaver that owns Uncle Nearest Inc. According to Uncle Nearest’s website: “Uncle Nearest Premium Whiskey and Nearest Green Distillery are owned by Uncle Nearest, Inc. and Uncle Nearest, Inc. is owned by Grant Sidney. Grant Sidney Inc. is wholly owned by Fawn Weaver.”
Humble Baron Inc.: A Delaware corporation sharing a name with Humble Baron Bar at Nearest Green Distillery. The suit claims it “appears to be owned by a blind trust that benefits Keith Weaver” and that funds between Uncle Nearest Inc. and Humble Baron Inc. appear to be “comingled.”
Farm Credit argues these assets should be “placed squarely within the scope of the receivership” because they’re intertwined with Uncle Nearest’s operations.
Timeline of Loan Agreements
July 2022: Farm Credit provided a $35 million revolving credit facility
Multiple expansions: Uncle Nearest requested to expand the credit line seven times, raising it to $67 million
July 2022: Additional $20 million term loan issued
June 2023: $1.7 million loan to purchase 108 acres of land adjacent to the distillery
July 2023: Credit line amended to allow Uncle Nearest to buy property in France for Cognac expansion
March 2023: $2.3 million loan for Martha’s Vineyard property
January 2, 2024: Uncle Nearest allegedly entered default on loan payments
July 28, 2025: Farm Credit filed lawsuit
August 15, 2025: Federal judge granted receivership
October 1, 2025: Receiver filed first quarterly report
Mid-2026 (expected): Receivership process concludes
About Uncle Nearest Whiskey Brand
Uncle Nearest was founded in 2017 by Fawn Weaver. The brand is named after Nathan “Nearest” Green, a formerly enslaved Black man credited with teaching Jack Daniel how to distill whiskey.
After emancipation, Nearest Green became Jack Daniel’s first “head stiller” (master distiller).
The brand became one of the fastest-growing American whiskey brands and was once valued as a billion-dollar company. It won major awards and constructed an enviable visitor center at Nearest Green Distillery in Shelbyville, Tennessee.
In 2020, Uncle Nearest and Jack Daniel’s (owned by Brown-Forman Corporation) collaborated on the Nearest & Jack Advancement Initiative to promote diversity in the spirits industry.
Is Uncle Nearest Whiskey Still Available to Buy?
Yes. The brand continues operating under receivership.
Despite the financial and legal troubles, Uncle Nearest whiskey remains on store shelves and available for purchase.
In a September 16, 2025 Instagram video, Fawn Weaver encouraged followers to act as grassroots sales reps by:
- Purchasing bottles of Uncle Nearest whiskey
- Asking liquor store owners to order more
- Requesting prominent shelf placement
The receiver is working to stabilize operations while the legal process continues.
Will There Be Bankruptcy?
The receiver’s October 2025 report suggests the company can avoid bankruptcy through reorganization.
Phillip G. Young Jr. stated the company has “significant value” and can continue as a “going concern” with proper management and asset sales.
The goal is to conclude the receivership by mid-2026 through refinancing or other resolution, not bankruptcy liquidation.
Should You Avoid Buying Uncle Nearest Whiskey?
That’s a personal decision based on your values and concerns.
Reasons you might continue buying:
- The whiskey itself is not defective or recalled
- The brand’s historical mission honoring Nathan “Nearest” Green remains meaningful
- Supporting the brand could help it survive financial restructuring
- The receiver believes the core business is viable
Reasons you might hesitate:
- Uncertainty about the company’s future
- Concerns about financial management
- Questions about where your money goes during receivership
- Preference to support more stable brands
The product quality and safety are not in question—this is purely a financial and management issue.
Can Consumers Sue Uncle Nearest?
Not based on this lawsuit. You would only have grounds to sue if:
- You purchased whiskey that was defective or contaminated (no such allegations exist)
- You were harmed by a defective product (no consumer injuries alleged)
- You were defrauded through false advertising about the product (no such claims filed)
- You have a business relationship with Uncle Nearest beyond being a customer
Simply purchasing their whiskey does not give you standing to join this commercial lending dispute.
How This Compares to Other Whiskey Lawsuits
Consumer class actions do exist in the spirits industry:
Fireball Cinnamon Whiskey lawsuit: Alleged misleading labeling—consumers thought they were buying whiskey-based product when some bottles contained malt beverage
Tequila “100% agave” lawsuits: Multiple brands faced suits claiming products weren’t actually 100% agave as labeled
Costco Kirkland whiskey lawsuit: Alleged misleading origin claims
Key difference: Those are consumer fraud class actions where buyers can recover compensation. The Uncle Nearest case is a business debt dispute with no consumer compensation.
What Happens Next
Immediate future (January-June 2026):
- Receiver continues managing operations
- Non-core assets (French properties, etc.) are sold
- Company attempts to stabilize finances
- Legal proceedings continue
Mid-2026 (target):
- Receivership concludes through refinancing or other resolution
- Either the company emerges restructured, or Farm Credit forces a sale
Possible outcomes:
- Uncle Nearest successfully refinances and founders regain control
- Company is sold to new owners who continue the brand
- Farm Credit forecloses and liquidates assets
- Bankruptcy filing if restructuring fails
Resources for Following This Case
Court records:
U.S. District Court for the Eastern District of Tennessee Case filed July 28, 2025 Search public records at: pacer.uscourts.gov
News coverage:
- The Lexington Herald-Leader (covers court filings)
- Distillery Trail blog (detailed legal analysis)
- VinePair and The Spirits Business (industry coverage)
- Bedford County Post (local Tennessee reporting)
Uncle Nearest official:
Website: unclenearest.com (limited info due to gag order) Instagram: @unclenearest (Fawn Weaver’s account)
This article provides information about ongoing commercial litigation. It is not legal advice. If you have questions about consumer rights related to product purchases, consult with a qualified consumer protection attorney. This lawsuit does not create any claims or compensation opportunities for Uncle Nearest whiskey consumers.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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