Nearest Green Distillery faces $100M lawsuit

7:27 p.m. July 31, 2025 • Updated 9:12 p.m. July 31, 2025

A high-stakes legal battle is unfolding in federal court that could shake the foundations of one of Tennessee’s most celebrated whiskey stories.

Court documents filed Monday in the U.S. District Court for the Eastern District of Tennessee in Chattanooga – a 709-page filing, including exhibits – reveal that Farm Credit Mid-America, a primary agricultural lender, is seeking the emergency appointment of a receiver to take control of operations at Nearest Green Distillery – the Shelbyville-based business founded by Fawn Weaver and named for Nathan “Nearest” Green, the formerly enslaved man who, legend has it, taught Jack Daniel how to distill whiskey.

The suit, brought against Uncle Nearest, Inc., Nearest Green Distillery, Inc., Uncle Nearest Real Estate Holdings, LLC, Fawn Weaver, and Keith Weaver, alleges that the company has failed to meet its financial obligations for more than a year, resulting in debts totaling an estimated $100 million.

According to court filings reviewed by the Observer, Farm Credit Mid-America is requesting that the court immediately install a third-party receiver to manage the distillery’s finances, real estate, and operations – essentially removing current leadership from control during the proceedings.

Plaintiff, Farm Credit Mid-America, PCA (the “Lender” or “Farm Credit”, by and through counsel, hereby submits this Verified Complaint against Defendants Uncle Nearest, Inc., Nearest Green Distillery, Inc., Uncle Nearest Real Estate Holdings, LLC, Fawn and Keith Weaver (in their official and individual capacities) (collectively, “Uncle Nearest”) for breach of certain loan agreements to Uncle Nearest and seeks the appointment of a receiver and other relief.

• Download the Nearest Green Complaint

The initial hearing regarding the receivership request is scheduled for Thursday, Aug. 7.

What Farm Credit Mid-America Alleges

Farm Credit Mid-America claims in its lawsuit that Uncle Nearest (including the Nearest Green entities and Fawn Weaver) misused loan funds in several significant ways:

• Purchased a $2.2 million Martha’s Vineyard home using loan proceeds but through a non-borrowing entity (UN House MV LLC), which also mortgaged the property to another lender – actions that violated the loan agreement.

• Sold barrels of whiskey, which were collateral for the loan, to generate cash – but used those proceeds to pay other parties, not Farm Credit.

• Sold millions in future revenue streams at a discount to at least four parties without informing the lender, thereby reducing the value of Farm Credit’s collateral.

• Overstated the value of its inventory in borrowing base reports, inflating its loan eligibility and avoiding required repayments. A later correction revealed the borrowing base was inflated by approximately $21 million.

• Failed to maintain required financial conditions, including a minimum net income of $1 and a net worth of $100 million during 2024, both required under the loan terms.

• Failed to provide reliable financial information, including bank statements, organizational documents, and accurate cash flow forecasts. This led to concerns about how loan proceeds were used and whether funds were properly managed or potentially misappropriated

In short, Farm Credit is alleging a pattern of financial mismanagement and misuse of borrowed funds by Uncle Nearest and its leadership.

What is Farm Credit Mid-America?

Farm Credit Mid-America is a financial services cooperative that provides loans, leases, crop insurance, and other financial products specifically to individuals and businesses in the agriculture industry. It’s part of the larger Farm Credit System, a nationwide network of borrower-owned lending institutions established by Congress in 1916 to support rural communities and agriculture.

Here are some key facts:

• Headquarters: Louisville, Ky.
• Coverage area: Operates in Indiana, Ohio, Kentucky, and Tennessee
• Ownership model: It’s a cooperative, meaning it’s owned by the customers it serves (farmers, agribusinesses, and rural homeowners)
• Mission: To secure the future of rural communities and agriculture by providing reliable and consistent credit
  In practical terms, Farm Credit Mid-America acts like a specialized bank for farmers, ranchers, and rural businesses.

It lends money for:

• Buying farmland
• Building agricultural facilities
• Purchasing equipment or livestock
• Operating expenses
• Rural home construction

In the case of Uncle Nearest and Nearest Green Distillery, Farm Credit Mid-America was likely involved in financing the construction, land acquisition, or operational scaling of the distillery. The current lawsuit and request for receivership suggest that Uncle Nearest has defaulted on substantial financial obligations, prompting the lender to take legal action to protect its investment.

The Shelbyville Times-Gazette first reported the lawsuit at 4:23 p.m. Thursday. Shortly after, Fawn Weaver posted a cryptic message on Instagram: “When you’re in the midst of high-stakes negotiations, sometimes, one of the best things you can do is let the other side play their hand first. Then you see their hand – and when you respond, it’s a doozy. Stay tuned. Don’t blink. Cheers.”

The Rise of a Modern Whiskey Empire

The lawsuit comes at a time when Fawn Weaver and the Uncle Nearest brand have become widely celebrated in the spirits industry – and beyond.

Launched in 2017, Uncle Nearest Premium Whiskey made headlines for its mission to honor the legacy of Nearest Green, an enslaved man who taught Jack Daniel how to make whiskey in the mid-1800s. That story, long omitted from Tennessee whiskey lore, was resurrected in part by the investigative reporting of Clay Risen and a deep dive by the Gastropod podcast, which explored how Green’s legacy had been historically overlooked and why it mattered.

Weaver, an author and entrepreneur, took up the torch not only to honor Green’s contribution to American distilling but to build a modern brand around it. And she succeeded – spectacularly. Uncle Nearest became one of the fastest-growing independent American whiskey brands and garnered multiple industry awards, including 2025 Tennessee Whiskey Distillery of the Year at the New York International Spirits Competition.

But behind the polished PR and widespread acclaim, Weaver told AfroTech that building the distillery wasn’t without resistance – especially as a Black woman in an overwhelmingly white and male industry. She even admitted to disguising her proper role in the early days of the business, fearing her leadership would limit growth opportunities. “I would go into meetings and introduce Keith as the CEO,” she said, referencing her husband. “That was strategic.”

Weaver also revealed she was the first Black woman to build a distillery from the ground up, an endeavor that required navigating complex real estate deals, sourcing funds, and overseeing massive construction projects – all while pushing against historic norms.

The Legacy at Stake

The federal lawsuit now casts a long shadow over that legacy. An emergency receivership is considered an extraordinary measure, typically reserved for cases where a lender believes the borrower’s financial mismanagement could jeopardize assets or further erode collateral.

At the center of this fight are millions in real estate and whiskey assets along U.S. 231 in Bedford County, where the distillery has become a tourist destination and a symbol of progress and representation in the spirits industry.

If a court-appointed receiver is granted, that individual would take control of day-to-day operations and financial decisions at the distillery, sidelining the Weavers until the debt issue is resolved.

What Happens Next

As of Thursday evening, neither Fawn nor Keith Weaver had issued a public statement on the lawsuit.

It remains unclear how the legal action will impact the distillery’s future, its dozens of employees, or its highly visible place in Tennessee whiskey’s evolving narrative. What is clear: The brand that made its name by spotlighting a hidden chapter in history is now facing serious scrutiny of its own.

Ironically, the Uncle Nearest brand gained traction by correcting an omission in history. Weaver’s work to restore Nearest Green’s name to its place in American whiskey lore was widely hailed as an act of cultural justice.

Now, the brand’s next chapter may depend on how it navigates a very different kind of reckoning – in federal court.

• 9:12 p.m. – Updated to include Fawn Weaver’s Instagram post.