Blum Holdings Inc (BLMH)

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... DEREK PETERSON ADMITS FAULT ...[LAWSUIT]

Mann sued Peterson and others involved in GrowOp (case numbers RG11568327 and RG11563609) for breach of contract and “unlawful” attacks, while the defendants filed a cross-complaint.

The former business partners decided to work toward an agreement in earnest after the government began a large-scale crackdown on medical marijuana in California and other states. Mann said they felt it was more important to redirect their attention to other important challenges affecting the industry.

“There are bigger issues facing medical cannabis that personal and business differences should not exacerbate,” Mann said. “We’re putting differences aside and encouraging others to do so in the best interest of the industry and cannabis patients.”



Peterson said both sides succumbed to emotion, which led to “untrue statements” and assertions.

“As the federal situation becomes more dire I have noticed (that) the industry is becoming more fragmented,” Peterson said. “We both realize our business differences were not helping the medical cannabis industry, and as allies we have a chance to make a much more positive impact.”

Disputes among partners are common in the business world, and the same holds true for the budding medical marijuana industry. Many dispensary owners, for instance, have had to navigate through similar challenges after a partnership soured either with a co-founder, investor or grower. - SOURCE: MMJ Business Daily

On March 29, 2011, Dhar Mann and WeGrow Garden Supply LLC filed an Individual and Corporate Complaint in the Superior Court of the State of California, Alameda County, File No. RG11568327 (the “Dhar Mann Complaint”), against GrowOp Technology alleging, among other things, that Mr. Mann is a 37.5% owner of GrowOp Technology and claiming damages of approximately $2,200,000 in connection with a purported agreement to sell Mr. Mann shares of common stock of GrowOp Technology equal to 37.5% ownership in GrowOp Technology. The Dhar Mann Complaint is also seeking an order from the court prohibiting GrowOp Technology from selling any additional securities or becoming a public company. GrowOp Technology denies, among other things in the Dhar Mann Complaint, the existence of a purported agreement to sell Mr. Mann shares of common stock of GrowOp Technology amounting to 37.5% ownership in GrowOp Technology or the damages owed. The trial has been set for December 2014. To date, the parties have not exchanged discovery.

We do not believe Mr. Mann will be successful and intend to defend this lawsuit vigorously. However, if Mr. Mann is successful, any damages we may have to pay that are awarded to Mr. Mann will have a material adverse effect on our business, financial condition, operating results. - SOURCE: SEC Documents