A group of investors has filed a class action lawsuit against High Times Holding Corp., adding to the ongoing struggles of the once-prominent cannabis media company. The lawsuit, filed in late June in the District of Delaware, is led by Mark C. and Jill L. Donius, who claim their $5,500 investment in 2021 was mishandled.
The Doniuses allege that despite receiving confirmation of their investment and having their check cashed, they never received their shares. After months of inquiries, they were told in March 2023 that their investment had been canceled and would be refunded. However, they claim their requests for information about the cancellation and refund were ignored.
The lawsuit points to issues with Prime Trust, the company designated as the escrow agent for High Times stock. Prime Trust, primarily known for handling digital assets and cryptocurrency, was recently issued a cease-and-desist order by Nevada regulators and has since filed for bankruptcy. According to the lawsuit, Prime Trust’s bankruptcy documents show no record of holding investor funds from the High Times offering in escrow.
The legal action also references another investor who purchased 200 shares for $2,200 in May 2020 but has yet to receive any information about his investment from either High Times or V Stock Transfer, the company reportedly handling share processing.
With at least 40 people involved in the class action, the investors are seeking monetary relief. However, their prospects for recovering funds may be challenging, as High Times is currently in receivership and has ceased publishing news content.
This lawsuit is the latest in a series of financial and legal troubles for High Times. In September 2023, the company and its chairman, Adam Levin, settled a complaint with the Securities and Exchange Commission regarding improper stock promotion and sales practices, resulting in a fine of over $550,000.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
