Ganjapreneur reports
Daniel Herer, son of cannabis activist and author Jack Herer, is being sued by a former business partner for allegedly reneging on business agreements. Herer has denied the charges in his own filing and claims that the plaintiff Herer Brands Inc. is infringing on intellectual property.
Full story after the jump.
In the complaint, Herer Brands contends that Herer attempted to capitalize on his father’s name after his death in 2010 and began perusing investors; however, the lawsuit claims Herer embellished “his own supposed business skills.”
“Unfortunately, due to and as a result of his misrepresentations and a series of bad decisions, these ventures incurred millions of dollars in debt, and the deals stalled or failed. Daniel, rather than deal with his problems directly and forthrightly, repeatedly reneged on agreements and continued to seek new investors and/or partners to payoff and replace the old ones, not unlike an ongoing Ponzi scheme.” — Herer Brands vs. Daniel Herer
According to the lawsuit, HBI Investor Group in July performed a due diligence check on Herer, who had signed a deal with the company to become its chief business development officer. During the 90-day due diligence period, HBI “determined that there were issues with the Jack Herer Assets that negatively impacted their value, and that the venture’s business prospects were not as strong as Daniel had represented” and, as a result, the parties “negotiated and agreed to adjustments in the HBI Investor Group’s investment and equity share in the venture,” according to the lawsuit.
