CannapharmaRx (GDHC), Gary Herick sued for self-dealing by new plaintiff
Fort Lauderdale, FL – CannapharmaRx, (stock symbol GDHC), now tangled in a third lawsuit over legal ownership of the corporation. The new plaintiff alleges he is one of the original architects of the Cannapharmarx business and business plan, and claims he was wrongfully “cut out” of the stock ownership and opportunity to build the company.
In the recent suit filed in The Circuit Civil Court of Broward County, the plaintiff is suing the company, Cannpaharmarx, as well as Gary Herick, its Chief Financial Officer, Chairman of the Board of Directors, and Robert “Bo” Liess, of Plant City, Fl, also a Board Director, on multiple counts including, self-dealing, conspiracy, conversion, breach of contract, unjust enrichment, ouster, as well as a host of other counts. The plaintiff claims he is entitled to the same stock ownership and salary as both Gary Herick and Gary Cohen.
According to the filing, the plaintiff alleges that the three original founders, Cohen, Herick, and himself, couldn’t agree on the method of capitalization, but had agreed on having equal shares of the company. He also alleges that they had reached an agreement to form the company, but Liess and Herick conspired to eliminate him from the deal. He further alleges that Liess provided funding to Herick to form the company without him, and retain control by adding Liess to the Board of Directors, enriching Liess with additional stock not reported to the shareholders in the private placement, nor to the Securities and Exchange Commission.
The plaintiff alleges that he wanted to use an investment bank or other financial outlet that has a primary directive for organizing an initial public offering, and hire an independent Chief Financial Officer. Herick wanted to do a fast stock deal to enrich himself and other specific shareholders, and have control of the corporate funds.
Other counts included in the suit are breach of fiduciary duty, breach of duty of good faith, duty of loyalty & duty of care, abuse of control, misappropriation of business opportunities, defalcation, equitable accounting, breach of oral contract, and breach of both implied in-law and in-fact contracts, and tortious interference with advantageous business relationships.
For a full copy of the suit, see The Circuit Civil Court of Broward County # CACE-14-022363
Contact [email protected]
Source: National Association of Cannabis Pharmacy
