Georgia investors sue Mississippi cannabis company to recoup $200k
- Georgia-based cannabis investors are seeking a default ruling for $200,000 from Mississippi Green Oil LLC, a medical marijuana company, after the company failed to respond to a lawsuit filed against them.
- The investors, David M. Konits and Scott Shier, allege that Mississippi Green Oil committed fraud, breach of contract, and unjust enrichment by not returning the investment money as promised.
- The investors served court documents to the company in July, but received no response, leading them to file for a default judgment.
- In addition to the $200,000 investment repayment, the investors are seeking punitive damages, interest, attorneys' fees, and other costs related to the case.
A pair of Georgia-based cannabis investors filed suit in federal court asking a judge to enter a default ruling on their behalf for $200,000 they’re attempting to recoup from a Mississippi medical marijuana company they say has refused to respond to their communication attempts.
David M. Konits and Scott Shier said in a court filing that Mississippi Green Oil LLC simply has not responded to a lawsuit filed against the company, which seeks repayment of the $200,000 investment, Law360 reported, despite having served the relevant parties back in July with court documents.
So Konits and Shier filed for a default judgment this month. The pair is also requesting that Mississippi Green Oil pay for punitive damages, interest, attorneys’ fees and other costs related to the case.
In the original lawsuit filed in May, Konits and Shier alleged that Mississippi Green Oil and its owners were guilty of fraud, breach of contract and unjust enrichment. The suit charged that the company pledged the investment money would be returned by December last year after they wired the $200,000 to the company in November.
But neither the funds nor any other investment benefit has materialized, which led to the lawsuit in the U.S. District Court for the Northern District of Georgia.