Person who struck deal to buy 420.com has asked the court to enter a judgment against High Times.
Domain investor and entrepreneur Merlin Kauffman has asked a court (pdf) to enter a judgment against Trans High Corporation and High Times Holding company after the defendants failed to uphold their end of a settlement agreement.
Kauffman filed a lawsuit against the parties in January 2020, alleging that he struck a deal with Hightimes Holding CEO Adam Levin via text message to buy 420.com for $307,500. Kauffman even wired the money. Levin later reneged on the deal, according to the lawsuit.
On December 7, 2022, the parties entered into a settlement agreement. Under the terms of the agreement, the defendants would return Kaufmann’s $307,500 and pay an additional $72,500 to cover interest and attorneys’ fees.
The agreement was amended on January 19, 2023, and again on February 8, 2023, to extend the deadlines. As part of the last extension extending the deadline to February 21, the defendants agreed to issue about $55,000 worth of stock in Hightimes Holding Corporation to Kauffman.
According to Kauffman’s latest filing with the court, the defendants had not initiated the payment or provided the stock units by the February 21 deadline.
The settlement agreement gave Kauffman the option to file an automatic entry of judgment against the defendants if they failed to make the payment by the deadline. Kauffman filed that motion with the court today. [Update: 3/29/23 the judge has granted the judgment.]
This company doesn’t even have 500k? The money must have gone up in smoke.
Don’t forget to sue Epik for not paying to their customers after selling their domains