Federal Court Greenlights Defamation Case for Michigan Cannabis Business

August 29th, 2024 Legal & Crime
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A Michigan-based cannabis company, Cherry Industries LLC, has been granted the right to continue its defamation lawsuit against an intellectual property attorney and his wife, despite their residency in Montana. U.S. District Judge Judith E. Levy ruled that the company had sufficiently demonstrated that the federal court has jurisdiction over the couple.

The case centers on allegations that attorney Brian Pangrle and his wife, Silvia Marie Lazo, made defamatory statements about Cherry Industries on social media and to state cannabis regulators. The couple's remarks allegedly implied that Cherry Industries had connections to Lalit Kumar, also known as Lalit Verma, who is accused of being involved in fraudulent activities. The true identity of Kumar remains unclear.

Cherry Industries claims that the couple's statements are false and have damaged the company's reputation. According to the lawsuit, Pangrle and Lazo were themselves victims of Kumar's schemes, having lost money in an investment tied to Kumar. They initiated a class action lawsuit against Kumar in February 2021, but the case was paused when one of Kumar's businesses filed for bankruptcy later that year.

Despite Cherry Industries' assertion that it too was a victim of Kumar's fraudulent activities, the company alleges that the couple has conducted a "scorched earth campaign" against them for years, spreading misinformation that has harmed their business.

Judge Levy's ruling addressed an issue in Cherry Industries' original complaint, which failed to properly establish that the parties involved were citizens of different states—a requirement for federal jurisdiction. After the company submitted a clarification on this point, the court accepted the revised filing, allowing the lawsuit to move forward.

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