Medical Marijuana Inc (OTCMKTS:MJNA) has got itself in a pickle recently. The company now faces an anti-slapp motion, with regard to its lawsuit against Project CBD. The latter is a non-profit education company focusing on cannabis science and therapeutics. MJNA had initially filed a lawsuit of $100 million against CBD, on the grounds of first amendment. The lawsuit concerns project CBD’s report titled “Hemp Oil Hustlers”, published in October 2014.
The report had cited that the financial practices of Medical Marijuana have been questionable. Additionally, two samples of the company’s “Real Scientific Hemp Oil” had been found to contain residues of toxic solvents. Medical Marijuana is amongst those companies that have been around since the beginning of the industry. It makes use of the cannabis oils to operate a number of divisions. The most important of these divisions is HempMeds, which provides CBD products made from industrial hemp. The HempMeds unit alone reported $2 million in sales in 3Q2015.
The attorney for CBD, Tyler Andrews, stated that Medical Marijuana Inc (OTCMKTS:MJNA) was trying to “bury public criticism of its business and squash any debate over the health concerns of its products.” He also labeled the lawsuit an abuse of the legal process. The report had been factually accurate and initial attempts to declare the findings of the report false lead to nothing. So MJNA has been trying to move out of the spotlight, using disinformation and the legal action.
The company has claimed that it has lost more than $100 million in sales, due to the report and it must be compensated. However, the director of Project CBD, Martin A. Lee, stated that the claims are bogus and the company is misleading the public about its losses. The only basis on which the lawsuit rests is that the results from the product tests are incorrect, however that still has to be proved in court.
