Nearest Green Distillery Faces Federal Lawsuit; Founders Deny Allegations

Nearest Green Distillery, the award-winning whiskey company founded by Fawn and Keith Weaver, is facing a federal lawsuit filed by Farm Credit Mid-America (FCMA), the lender that helped finance much of the distillery’s development.

The lawsuit, filed July 28, seeks a court-appointed receivership, a legal move that would place day-to-day operations and financial decisions in the hands of an independent party. If granted, the move could temporarily sideline the Weavers and raise questions about the future direction of the Shelbyville-based brand.

Court filings indicate that FCMA’s action stems from concerns over loan obligations and the protection of collateral tied to real estate and operations. The case has cast a shadow over one of the fastest-growing and most celebrated new whiskey brands in the country. It remains unclear how the lawsuit could affect the distillery’s workforce, future production plans, or its reputation among whiskey enthusiasts.

In a statement to the Boston Business Journal, Fawn and Keith Weaver said they “vigorously deny” the lender’s allegations and intend to defend their position. Shortly after the lawsuit was filed, Fawn Weaver also posted a message on Instagram suggesting that negotiations are ongoing, writing:

“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 lawsuit marks a critical moment for the brand, which has been widely praised for its rapid growth and for honoring the legacy of Nathan “Nearest” Green, the formerly enslaved man credited with teaching Jack Daniel how to distill whiskey.