HempAmericana Inc (HMPQ)

[stockscamalerter]

"As to that scheme, I find that the Complaint plausibly alleges that HempAmericana and Rosillo had the requisite scienter to be held liable for their participation. First, it plausibly alleges that HempAmericana and Rosillo were willing participants in the scheme. They were aware of the terms of the GPL Defendants' investment, and that more than half of the investment was going to fund the promotional activity. Indeed, Rosillo paid Individual A because the GPL Defendants' brokerage firm would not allow the funds to come from HempAmericana's escrow account. In addition, the Complaint alleges that Individual A was in contact with both Rosillo and the GPL Defendants, leading to a strong inference that all of the various actors in this complex scheme were working in concert and with the express understanding that the purpose was to drive up the price of HempAmericana's stock. Finally, based upon the allegations that prior to the GPL Defendants' investment, HempAmericana had never been profitable, it strains credulity to think that neither HempAmericana nor Rosillo knew what was going on. And if they simply thought that previously uninterested investors suddenly saw substantial value in HempAmericana's stock, despite no other changes in business operations or financial prospects, then they were willfully blind to the material circumstances surrounding HempAmericana's sudden change in fortune."