DionyMed Scores Victory in Eaze Payment Processing Lawsuit – New Cannabis Ventures

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TORONTO, September 11, 2019–(Organization 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 way of its web-site 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,” which includes 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, due to the fact Eaze had terminated all on the net credit and debit card payment processing and ceased functioning 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 must abstain from hearing the case due to the fact 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 net card payments and cease functioning with EU Processing shortly just after our complaint was filed is a highly effective admission of guilt, and an acknowledgment that the allegations in our complaint are correct. 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 enormous damages its conduct has brought on our firm and shareholders. This outcome puts the boards of directors of cannabis providers everywhere on notice that excellent 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.

About DionyMed

Founded in 2017, DionyMed is a multi-state cannabis brands platform, supporting cultivators, makers and award-winning brands in the healthcare and adult-use cannabis markets. DionyMed sells branded goods in just about every category from flower to concentrates and edibles. DionyMed serves cannabis buyers by way of direct-to-customer fulfillment and retail dispensary distribution with its developing portfolio of award-winning brands. Discover far more at dyme.com and adhere to @DYME_Inc on Twitter and LinkedIn.

Original press release

Published by NCV Newswire

NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate higher top quality content material and details about top cannabis providers to assistance our readers filter out the noise and to remain on top rated of the most essential cannabis business enterprise news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

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