TORONTO, September 11, 2019–(Business enterprise WIRE)–Herban Industries CA LLC (“Herban”), a subsidiary of DionyMed Brands Inc. (“DionyMed” or the “Company“) (CSE: DYME OTCQB: DYMEF), a multi-state cannabis brands, direct-to-customer and distribution platform, accomplished a victory yesterday in its unfair competitors lawsuit against Eaze Technologies, Inc. (“Eaze”) by defeating Eaze’s motion to dismiss Herban’s complaint.
On June four, 2019, Herban filed suit in the California Superior Court for the County of San Francisco against Eaze searching for an injunction to halt Eaze’s processing of credit and debit cards by means of its web page and mobile application. Herban’s complaint alleges that “to get an unfair competitive benefit in the California cannabis delivery market place, Eaze is directing, coordinating, and participating in a scheme to defraud credit card providers and monetary institutions into processing cannabis transactions in violation of a host of criminal laws,” like prohibitions against wire fraud and bank fraud. The complaint alleges Eaze carries out this conspiracy applying offshore payment processors and a series of shell providers to conceal the cannabis nature of card purchases produced on its platform.
On July five, 2019, Eaze moved to dismiss the lawsuit by filing a demurrer. Eaze claimed Herban’s complaint was moot, for the reason that Eaze had terminated all on the web credit and debit card payment processing and ceased operating with its former vendor, EU Processing. Eaze also claimed Herban did not have standing to sue Eaze, that Herban failed to meet the technical pleading specifications for its unfair competitors claim, and that the court need to abstain from hearing the case for the reason that state and federal cannabis policy is in flux.
On September 10, 2019, the San Francisco Superior Court denied Eaze’s motion in all respects, rejecting every of its arguments. As a outcome, Herban will now have the chance to conduct discovery into Eaze’s alleged credit and debit card fraud and bring the matter to trial.
Eaze’s alleged choice to terminate on the web card payments and cease operating with EU Processing shortly right after our complaint was filed is a potent admission of guilt, and an acknowledgment that the allegations in our complaint are accurate. These adjustments do not go far adequate. We are pleased with the court’s choice to let our lawsuit to proceed.
DionyMed CEO Edward Fields
We will continue till the direct-to-customer cannabis delivery playing field is level for all market place participants, and Eaze has compensated DionyMed for the huge damages its conduct has triggered our enterprise and shareholders. This outcome puts the boards of directors of cannabis providers everywhere on notice that fantastic governance and regulatory compliance are table stakes for participation in the hyper-development cannabis market place.
Herban is represented in the lawsuit against Eaze by Buckley LLP, a premiere law firm specializing in monetary solutions, government enforcement, and litigation.
Founded in 2017, DionyMed is a multi-state cannabis brands platform, supporting cultivators, companies and award-winning brands in the health-related and adult-use cannabis markets. DionyMed sells branded solutions in just about every category from flower to concentrates and edibles. DionyMed serves cannabis buyers by means of direct-to-customer fulfillment and retail dispensary distribution with its developing portfolio of award-winning brands. Study far more at dyme.com and adhere to @DYME_Inc on Twitter and LinkedIn.
Original press release