What You Should Know:
– Fruit Street Health announced that it has received a letter from the Securities and Exchange Commission (“SEC”) confirming the conclusion of the SEC’s investigation into the company. The letter states that the SEC enforcement staff does not intend to recommend any action by the SEC against Fruit Street Health.
– This announcement allows Fruit Street Health to continue its focus on its public benefit mission: serving the 1 in 3 Americans with prediabetes and helping prevent the progression to Type 2 diabetes.
Timeline of the SEC Investigation
- October 27, 2023: The SEC issued a subpoena for documents to Fruit Street Health. The Subpoena required the production of documents by November 10, 2023.
- December 2023: Around the time the subpoena was issued, Fruit Street’s counsel informed the SEC that it viewed the Subpoena as constitutionally invalid, relying on constitutional arguments. Fruit Street stated it would voluntarily produce documents since the inception of receiving the subpoena and produced documents voluntarily on a rolling basis.
- October 28, 2024: The SEC filed a subpoena enforcement action in the U.S. District Court for the Southern District of New York, seeking a court order directing Fruit Street to comply with the subpoena. The SEC was investigating whether Fruit Street and its affiliates violated federal securities laws through false/misleading statements to investors and an unregistered securities offering.
- July 14, 2025: Fruit Street Health received a letter from the SEC stating the investigation has concluded and no action will be recommended against the company.
Reaffirming Commitment to Diabetes Prevention and Underserved Populations
With the SEC investigation now concluded, Fruit Street Health is set to continue its public benefit mission: serving the 1 in 3 Americans with prediabetes and helping prevent the progression to Type 2 diabetes. The company is a CDC-recognized provider of the National Diabetes Prevention Program (National DPP), which it delivers through telehealth and live group video conferencing via Zoom with registered dietitians. Fruit Street was recently approved as a Medicare Diabetes Prevention Program supplier and is also a Medicaid provider in Illinois. In addition, Fruit Street’s CEO was recently selected by the CDC to join its Lifestyle Change Implementation Research Network.
