ROCKY MOUNTAIN High Brands, Inc. (OTCMKTS:RMHB) firmly denied the false, defamatory, and malicious allegations stated by the Shareholder Alert released on April 20 by the Law Office of A.A. McClanahan. The company has requested the firm to release a retraction of the alert because it misstated critical facts and distorted the status of litigation.
Rocky Mountain reported that they will continue to strongly prosecute allegations against Donna Rayburn and Roy J. Meadows, and also will modify its Florida lawsuit. In this lawsuit, it asked for the forgiveness of debt owed to Meadows, the return of ‘Series C’ preferred shares, dissolution of his warrants, and the return of principal and interest paid to Rayburn under usurious note with the firm.
In addition, Rocky Mountain demands disgorgement of profits earned by Rayburn and Meadows following usurious notes and proceeds on trading Rocky Mountain common stock. As per the update, the total damages sought from Rayburn and Meadows may exceed $20 million.
Rocky Mountain believes the recent alert ignores the pre-existing lawsuit submitted by them and mistakenly alleges that AA. McClanahan Jr. Law office has started civil litigation. Instead, they initiated proceedings last week to close Meadows’ commercially unreasonable measures to arbitrate certain differences against the firm before a non-lawyer.
In retort, Meadows proclaimed his charges in Court, which Rocky Mountain would be disproving. He also submitted a Motion for Temporary Ban to avert further sales of the stock and assets of the firm. In this Motion, Mr. Meadows stated that the company sold over 16 million shares on April 18, which amounted to the total trading volume that day. The company stated that neither the firm nor its Directors or Officers offered one single share of company’s stock that day.
In last trading session, the stock price of Rocky Mountain surged more than 16% to close the trading session at $0.0520.