Has anyone seen this??
Herbal Brownie Maker Files Libel Suit Over Marijuana Claims
Share us on: By Jeremy Heallen
Law360, Houston (November 19, 2012, 5:27 PM ET) -- A maker of herbal relaxation brownies on Friday launched a defamation suit in Texas court against RaceTrac Petroleum Inc. and several media outlets, alleging it lost sales contracts after the companies falsely reported that the snacks contained synthetic marijuana.
The DSD Network of America Inc., maker of Kush Cakes, claims that it was defamed when RaceTrac wrongly alleged in a Louisiana lawsuit that the product contained synthetic marijuana and Courthouse News Service Inc., CSP Information Group Inc., Stagnito Media Inc. and Franchise Law Blog.net all published stories quoting the suit.
“After the filing of the lawsuit, defendants CSP, Stagnito, [Courthouse News Service] and [Franchise Law Blog.net], without engaging in any diligence regarding the truth and veracity of the lawsuit, or the allegations contained therein, published defamatory statements about plaintiffs and Kush Cakes resulting in catastrophic business and economic injuries to plaintiffs,” the suit said.
Stagnito Media declined to comment Monday. Racetrac and the other media organizations did not respond to a request for comment.
The snacks, which are marketed in tie-dyed packaging emblazoned with the name Kush Cakes in a green font that resembles a leaf, are “baked with love and our proprietary blend of all natural ingredients, featuring Melatonin and Valerian root as the key active ingredients,” according to the company.
What the snacks do not contain, the suit said, is marijuana, synthetic or otherwise.
According to the suit, Marco Moran, an officer with DSD, developed the idea for Kush Cakes in 2011 for national and international distribution to various retail outlets.
Later that year, the state of Louisiana began cracking down on sales of synthetic marijuana, which the state outlawed in 2010, the suit said. Law enforcement eventually seized several products suspected of containing the illicit substance that were being sold from a RaceTrac franchise in Ruston, La., including Kush Cakes, the suit said.
The investigation prompted RaceTrac to sue its franchise operator in Louisiana court for breach of contract, where the company alleged, among other things, that the franchisee was selling synthetic marijuana and Kush Cakes.
But DSD says in the suit that RaceTrac wrongfully described Kush Cakes as “an illegal product” in court filings. The company claims that Kush Cakes are completely legal but that RaceTrac’s lawsuit and ensuing media coverage have cast the product in a false light, spooking vendors and causing the loss of sales contracts.
DSD claims the media companies simply repeated RaceTrac’s defamatory statement and that by accusing the company of engaging in illegal activities, the news organizations’ articles constitute defamation per se under state law.
“Defendants have libeled plaintiffs, as the defamatory statements were expressed in written or other graphic form that tends to injure plaintiffs’ reputation and exposed plaintiffs to public hatred, contempt, ridicule, financial injury and impeached plaintiffs’ honesty, integrity, virtue and reputation,” the suit said.
The suit alleges defamation, civil conspiracy, tortious interference and negligence, among other things. DSD is seeking actual and punitive damages.
Attorneys for DSD did not immediately respond to a request for comment Monday.
DSD is represented by Eric L. Rhodes and Kathryn Y. Williams of Daniel Williams & Associates PLLC.
Counsel information for the defendants was not available.
The case is The DSD Network of America Inc. et. al., v. Racetrac Petroleum Inc., et. al., case number 2012-68414, in the 269th Judicial District Court of Harris County, Texas.
