The Claimed Number 1 CBD Distributor, SBL, LLC d/b/a Global Cannabinoids, Sued By Customers For Fraud, Breach Of Fiduciary Duty
FORT LAUDERDALE, Fla., Oct. 6, 2020 /PRNewswire/ -- Although their mission statement is simple, ”[d]eliver the highest quality industrial hemp-derived phytocannabinoids & wholesale hand sanitizer as quickly as possible to our CBD & sanitizer wholesale customers,” Global Cannabinoids has utterly failed to keep their promise. After more than a year, Global Cannabinoids fails to fulfill purchase orders or provide an accounting of their clients’ funds.
One of Global Cannabinoids’ customers, Raw Life Organics, LLC (“Raw Life”), a South Florida start-up company that sank most of its operating income into fully funding purchase orders with Global Cannabinoids, is fighting back by filing suit against the large CBD distributor for a bevy of claims, including fraud, breach of fiduciary contract, and breach of contract.
In September 2019 Global Cannabinoids received hundreds of thousands of dollars for full payment of purchase orders for the manufacture and delivery of various CBD products. Instead of making good on its contractual obligations, Global Cannabinoids has failed to issue payment to the manufacturer and now appears to have misappropriated Raw Life’s funds to pay other debtors, initiate it’s shift toward the manufacture and sale of hand sanitizer, or issue company executives, like former CEO Ryan Lewis, large bonus and salary payments. This appears to be the growing trend in the CBD business as some have likened it as this century’s wild west land grab.
Prior to filing its lawsuit, Raw Life requested a refund despite suffering significant losses. They were advised that the company was now strapped for cash and could not afford a refund despite CEO Ryan Lewis’ statements on Fox News that Global Cannabinoids was thriving and had already generated contracts for the production of hundreds of thousands of gallons of sanitizer. It was then that Raw Life realized the money earmarked for its product had been squandered or used to pay other debts, a tactic similar to that employed in a classic Ponzi scheme.
The case is in the United States District Court for the Southern District of Florida, case number 20-61944-CIV. Cohen & McMullen is investigating the business practices of Global Cannabinoids’ and its former CEO, Ryan Lewis, and the impact they have had on legitimate businesses across the country.
About Cohen & McMullen, P.A.: Cohen & McMullen, P.A. is a boutique law firm with offices strategically located in South Florida and New York, NY, which specializes in complex litigation across a broad range of industries. The firm’s partners, Bradford M. Cohen and Michael J. McMullen, who most recently successfully litigated a whistleblower claim against a publicly traded company, counts the Trump Organization, Corey Lewandowski, Kodak Black, DMX, Dennis Rodman, Udonis Haslem, Vanilla Ice, DeAndre Baker, and Scott Storch among their notable representations.
Bradford M. Cohen, Esq.
Michael J. McMullen, Esq.
Cohen & McMullen, P.A.
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