Georgia investors sue Mississippi cannabis company to recoup $200k

The investors allege that the company has failed to respond in any form to the lawsuit, despite being served in July.

A pair of Georgia-based cannabis investors filed suit in federal court asking a judge to enter a default ruling on their behalf for $200,000 they’re attempting to recoup from a Mississippi medical marijuana company they say has refused to respond to their communication attempts.

David M. Konits and Scott Shier said in a court filing that Mississippi Green Oil LLC simply has not responded to a lawsuit filed against the company, which seeks repayment of the $200,000 investment, Law360 reported, despite having served the relevant parties back in July with court documents.

So Konits and Shier filed for a default judgment this month. The pair is also requesting that Mississippi Green Oil pay for punitive damages, interest, attorneys’ fees and other costs related to the case.

In the original lawsuit filed in May, Konits and Shier alleged that Mississippi Green Oil and its owners were guilty of fraud, breach of contract and unjust enrichment. The suit charged that the company pledged the investment money would be returned by December last year after they wired the $200,000 to the company in November.

But neither the funds nor any other investment benefit has materialized, which led to the lawsuit in the U.S. District Court for the Northern District of Georgia.

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John Schroyer

John Schroyer has been a reporter since 2006, initially with a focus on politics, and covered the 2012 Colorado campaign to legalize marijuana. He has written about the cannabis industry specifically since 2014, after being on hand for the first-ever legal cannabis sales on New Year’s Day that year in Denver. John has covered subsequent marijuana market launches in California and Illinois, has written about every aspect of the marijuana trade, and was part of the team that built the cannabis industry’s first-ever trade show, MJBizCon. He joined Green Market Report in 2022.


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