SEC Files Settled Action Against Former CEO and Consultant for False Press Release

SEC Litigation Releases

Filed February 23rd, 2026

Detected February 24th, 2026

Summary

The SEC filed a settled action against former Edison Nation CEO Christopher B. Ferguson and consultant Brian P. McFadden for allegedly disseminating a false press release regarding PPE purchase orders. Ferguson and McFadden consented to permanent injunctions, civil penalties of $50,000 each, and officer/director bars.

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The Securities and Exchange Commission (SEC) has filed a settled enforcement action against Christopher B. Ferguson, former CEO of Edison Nation, Inc., and Brian P. McFadden, a consultant, in the U.S. District Court for the Southern District of New York (Case No. 26-cv-01482). The complaint alleges that Ferguson and McFadden directed Edison Nation to issue a press release on April 16, 2020, falsely claiming over $10 million in purchase orders for Personal Protective Equipment (PPE) when the actual amount was approximately $2.5 million. This misrepresentation led to a 197% increase in Edison Nation's share price, after which McFadden allegedly sold shares, realizing illicit profits of approximately $75,208.

Ferguson and McFadden have consented to final judgments, without admitting or denying the allegations. These judgments will include permanent injunctions against violating charged securities laws, a $50,000 civil penalty for each individual, a five-year prohibition from serving as an officer or director of a public company, and McFadden will pay disgorgement of $75,208 plus prejudgment interest. This action highlights the SEC's focus on accurate corporate disclosures, particularly during periods of heightened market activity and public interest, and serves as a warning against misrepresenting company performance to inflate stock prices.

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Christopher B. Ferguson and Brian P. McFadden

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26487 / February 23, 2026

Securities and Exchange Commission v. Christopher B. Ferguson and Brian P. McFadden, No. 26-cv-01482 (S.D.N.Y. filed Feb. 23, 2026)

SEC Files Settled Action as to Former CEO and Consultant to Company for Allegedly Issuing False COVID-era Press Release

On February 23, 2026, the Securities and Exchange Commission filed a settled action as to Christopher B. Ferguson, former CEO of Edison Nation, Inc., and Brian P. McFadden, a consultant to Edison Nation, in connection with allegations that Edison Nation disseminated a false and misleading press release and attached it to a Form 8-K it filed with the Commission.

The SEC’s complaint alleges that, before the markets opened on April 16, 2020, Edison Nation, at the direction of Ferguson and McFadden, issued a press release announcing that “Edison Nation Medical Secures Over $10 Million in Purchase Orders for Personal Protective Equipment in First Week Since Launch,” when, in reality, it had only approximately $2.5 million in purchase orders at the time of the press release. As alleged, Ferguson, of Fishers, Indiana, and McFadden, of Safety Harbor, Florida, had been negotiating with a distribution company for the purchase of $9 million worth of hand sanitizer, but, two days before Edison Nation issued the press release, the distribution company informed them that it was unable to proceed with the transaction. The complaint further alleges that Edison Nation’s share price increased from $1.67 as of the prior trading day’s closing to $4.96 by market open on April 16, 2020 after the issuance of the press release—an increase of 197%—and after the announcement McFadden sold 33,290 shares of Edison Nation stock and obtained illicit profits of approximately $75,208.

The SEC’s complaint, filed in federal court in the Southern District of New York, charges Ferguson with violating Section 17(a)(3) of the Securities Act of 1933 and McFadden with violating Sections 17(a)(2) and (3) of the Securities Act.

Without admitting or denying the allegations in the SEC’s complaint, Ferguson and McFadden consented to the entry of final judgments, subject to court approval, that would permanently enjoin them from violating the charged provisions of the federal securities law, impose a civil penalty of $50,000 against each of them, prohibit them for five years from serving as an officer or director of a public company, and order McFadden to pay disgorgement of $75,208 with prejudgment interest of $28,209.

The SEC’s investigation was conducted by Han Nguyen and Julia C. Green of the Division of Enforcement’s Market Abuse Unit, under the supervision of Joseph G. Sansone, Chief of the Market Abuse Unit, with the assistance of trial counsel Karen M. Klotz under the supervision of Gregory R. Bockin, and Scott A. Thompson, Associate Director of the SEC’s Philadelphia Regional Office. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation and the Financial Industry Regulatory Authority.