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Cannabis Delivery Company Eaze Accused of Fraud in Lawsuit

The lawsuit also implicated some heavy hitters in the tech space.

I Stock 183575355

Eaze, a troubled cannabis delivery company, is at the center of a new round of legal and financial turmoil.

According to WeedWeek, the company has been sued by the founders of Green Dragon, a cannabis company that merged with Eaze nearly two years ago. They accused Eaze of deliberately covering up financial issues so the merger could be completed.

The lawsuit also implicated some heavy hitters in the tech space. According to SFGate, plaintiffs include Netscape founder James Henry Clark and his business partner Thomas Jermoluk. The lawsuit said the pair’s shell company owns more than one-third of Eaze stock and that it sits on the company’s board.

Green Dragon’s founders claim that Clark and Jermoluk misled them about Eaze’s financial situation and suggested that a new round of funding would provide a new influx of cash. But they said in reality Eaze was struggling to cover payroll.

The latest legal kerfuffle for Eaze comes after years of trouble including multiple rounds of layoffs. Last year, the company laid off 25 employees, which followed similar job cuts earlier in 2022, in 2021 and in 2019.

In 2021, former Eaze CEO Jim Patterson pled guilty to federal charges.

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