A social media marketing campaign to boycott the hashish extract firm Cura Cannabis Solutions has led to a lawsuit. On Friday, Cura filed a lawsuit in Alameda County, California, accusing Bloom Farms of defaming the corporate on-line utilizing nameless Twitter and Instagram handles. The lawsuit alleges individuals working for or on behalf of Bloom Farms orchestrated a marketing campaign with “malicious intent” to destroy Cura’s enterprise.
Speaking with High Times, a Cura spokesperson stated the corporate’s lawsuit is about restoring equity to the THC and CBD oils market. “From its inception, Cura has sought to be a mannequin of variety and inclusion and to help a way of group within the hashish business. We are disenchanted to find that one other firm in our group would sink to those lows and make the most of such despicable techniques to hamper competitors within the business. We sit up for proving our case in courtroom and to restoring a good and equal enjoying subject to the marketplace for THC and CBD oils.”
Cura Cannabis Solutions Just Filed a Lawsuit Against Bloom Farms
Cannabis retail is a aggressive business, particularly in Oregon and California. But one well-known Portland concentrates firm says one in every of their foremost rivals isn’t enjoying truthful.
According to a earlier John Doe lawsuit filed by Cura Cannabis Solutions, the corporate complained that they began dropping gross sales early final yr, when pretend social media accounts and nameless telephone calls started making false and exaggerated claims referring to a settled sexual assault case from the CEO on the time, Nitin Khanna’s, previous.
Now, Cura is accusing its rival Bloom Farms of creating the false claims that proceed to wreck the corporate’s gross sales and popularity.
According to the grievance, “Cura is one of the largest cannabis companies in the world and has experienced rapid growth since its founding in 2015. Initially, a 15-person operation limited to Oregon, Cura now has more than 500 employees and expanded to California and Nevada in 2017, to Arizona in 2018 and has plans to expand to other states and international markets. Cura had revenues of more than $40 million in 2017 and $117 million in 2018. Cura secured over $40 million in financing based on a $400 million valuation in May 2018 and over $75 million in financing in November 2018.”
Despite this progress, Cura alleges that Bloom’s techniques harmed its enterprise. The grievance states that Bloom Farms created a number of pretend social media handles as a way to defame Khanna, Cura, and Select Oil, one among Cura’s signature cartridge manufacturers.
One account took issues up a notch. Not solely did it proceed to make claims about Khanna’s previous, it additionally referred to as for boycotting Cura. Cura’s lawsuit alleges social media posts inspired followers to “vote with your wallet.”
Furthermore, the lawsuit additionally alleges that at the very least 9 retailers who inventory Cura’s merchandise acquired nameless telephone calls making false claims about Khanna and Cura.
Cura alleges that Bloom exaggerated Khanna’s civil go well with to defame the corporate and harm its enterprise. Under a number of pretend social media handles, Twitter and Instagram posts went out tagging Cura and its manufacturers, falsely claiming Khanna “has a history of sexual assault charges” and “rape charges.”
Cura Attempts to Recover From Social Media Campaign Against Former CEO
As per Cura Cannabis Solution’s preliminary press launch, they noticed the “personal allegations” towards Khanna a distraction from the corporate’s mission. It was distracting sufficient to immediate Khanna’s resignation from his publish as Cura CEO in May of 2018. Cura’s new president and CEO Cameron Forni advised reporters that Khanna’s resignation was as a consequence of a “campaign by a competitor to harm our company.”
And based on Cura, that marketing campaign is working. The firm says it has already misplaced clients and retail shoppers in response to publicity over Khanna’s previous.
Response from Bloom Farms
After reaching out for a remark, Bloom Farms’ founder and CEO Michael Ray responded:
“We will not comment on the specific claims in the pending litigation but intend to defend ourselves vigorously. This suit is yet another attempt by Select/Cura to bully competitors and silence individuals who are exercising their right to free speech by expressing their outrage and disgust over publicly available information on rape allegations against Select’s founder Nitin Khanna. Bloom Farms is a socially conscious company that has thrived by putting people and communities first since our founding. As a company and individuals, we join and support those who advocate for equal opportunity and condemn all forms of sexual discrimination, harassment, and assault.”