Boomerang Time.. Cannabis Regulation Publisher Sued For Alleged Securities Fraud

Although we have already reported on this a week or so back…..

We Woz Cheated ……Former CannaRegs Investors (employees) File Securities Fraud Lawsuit After $10 Million Acquisition

Here’s an interesting update from MJ Biz, who, it appears, were unable to get Amanda Ostrowitz to comment on the suit.

A securities fraud lawsuit filed against the co-founder of the web-based marijuana rules monitoring firm CannaRegs underscores how company sales can lead to court battles among initial investors – a development that could continue as more founders exit the industry.

Lester Firstenberger and Sathya Rajavelu, two former CannaRegs executives, said they sold their remaining cumulative 11.8% interest in the Denver-based company last September for $178,942, based on a $1.5 million valuation of the company.

Their federal court complaint, filed earlier this month in the Southern District of New York, claims that CannaRegs founder Amanda Ostrowitz encouraged them to sell, while concealing that she planned to sell the company for $10 million to Fyllo, a Chicago-based software company.

More at

Founder of cannabis firm CannaRegs sued for alleged securities fraud

 

 

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