Gareth Sheridan's company Nutriband admitted earlier this year that its internal financial controls are "not effective" and contain "material weaknesses".
This was caused by inadequate oversight, unqualified accounting personnel and failure to ensure accurate and timely financial reporting.
The admission in Nutriband's quarterly Securities and Exchange Commission (SEC) filing on 30 May means the company cannot ensure financial information disclosed to investors and regulators is accurate and submitted on time.
According to the filing Nutriband's management identified specific problems including "absence of segregation of duties, as well as lack of qualified accounting personnel, and excessive reliance on third-party consultants for accounting, financial reporting and related activities”.
The company warned its internal controls have inherent limitations and may fail to catch errors or misstatements.
“As of the end of period covered by this report, we carried out an evaluation, with the participation of our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures pursuant to Securities Exchange Act Rule 13a-15,” the filing says.
“Based upon that evaluation, we concluded that our disclosure controls and procedures are not effective in ensuring that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act is recorded, processed, summarised and reported, within the time periods specified in the SEC's rules and forms.”
Errors in submitting correct information to authorities continued after the quarterly report was filed, with Nutriband filing a correction with Nevada authorities in July 2025 to fix an error in the number of authorised preferred shares listed in corporate documents.
"The authorised number of shares of Series A Convertible Preferred Stock listed in the Certificate of Designation as 2,788,678 shares" should be corrected to "10,000,000 shares," says the filing.
In 2018, Nutriband and its senior executives paid $50,000 in penalties to settle an SEC investigation into inaccurate statements in registration documents, the Irish Times reported.
The Ditch has reported that Sheridan marketed a two-bedroom Utah property at €2,300 per month in February – higher than average rent for the area. The Ditch also reported that Sheridan is being sued for fraudulent misrepresentation by an investment bank and law firm.
Sheridan has been contacted for comment.
