The new developing story that appeared in connection with Medical Marijuana Inc (OTCMKTS:MJNA) is that Project CBD has filed a motion, requesting the company’s $100 million lawsuit. If accepted, the situation could dent both the company’s image and its financial status.
Falling back on issue
It is reported that Project CBD has submitted an anti-SLAAP motion to sought dismissal of the company’s lawsuit on grounds of First Amendment. Reportedly, Project CBD is an educational non-profit based out in California.
The lawsuit stems from Project CBD’s publication in October 2014. In its Special Report released under “Hemp Oil Hustlers”, the non-profit organization had pointed on Medical Marijuana Inc (OTCMKTS:MJNA)’s questionable financial practices. The report also highlighted the toxic solvent residue, which was found in two samples of the company’s “Real Scientific Hemp Oil” (RSHO). Following the publication of the report, Medical Marijuana Inc (OTCMKTS:MJNA) and its holding company HempMeds slapped lawsuit on Project CBD, claiming that the company has suffered a loss of over $100 million due to the Special Report.
The lawsuit was filed on grounds that the Project CBD’s Special report was based on invalid test results. Further, the company alleged that Project CBD and its director Martin A. Lee are engaged in Trade Libel and intentional interference with a motive to earn prospective business advantage. In response, Lee said that the allegations are as bogus as the company itself.
Project CBD’s attorney Tyler R. Andrews from Greenberg Traurig, LLP filed the motion arguing that Medical Marijuana Inc (OTCMKTS:MJNA) is attempting to cover up public criticism under the umbrella of the lawsuit. He added that the company is trying to turn the attention of the public from its own business practices to such legal matters.
The stock of Medical Marijuana Inc (OTCMKTS:MJNA) fell down by more than 4% to $0.0756 during after-hours as 3.32 million shares changed hands.