NEWARK, N.J., Nov. 13, 2014 /PRNewswire/ -- On Nov. 4, 2014, Gary Cohen, BSPharm, RPh, the founder and visionary of CannapharmaRx , announced a lawsuit against Golden Dragon Holding Company (stock symbol GDHC), now doing business as CannapharmaRx. In response to this lawsuit CannapharmaRx filed a counter lawsuit against Cohen, a co-founder, shareholder and member of the Board of Directors of CannapharmaRx, in the United States District Court for the District of New Jersey.
The suit is in response to a recent suit filed by Cohen where he alleges that Gary Herick, CannapharmaRx's CFO, and the company's board of directors breached their fiduciary responsibility to the company, its employees and shareholders. Additional counts alleged in the suit include equitable accounting, breach of duty of good faith, duty of loyalty & duty of care, abuse of control, conversion, misappropriation of business opportunities, and defalcation.
CannapharmaRx's suit alleges tortious interference with current and prospective business relationships and advantages, and defamation – libel.
Cohen filed an additional derivative suit on behalf of the CannapharmaRx Corporation. The lawsuit alleges that the Boards failure to remove Herick, after he would not provide shareholders with any accounting or financial documents is a breach of their fiduciary duties. Cohen alleges that the Board ignored requests for Herick's resignation, as well as other requests for accountability that were in the best interests of its shareholders. The suit further alleges that the wrongful conduct was not due to an honest error in judgment, but rather to Defendant's gross mismanagement, bad faith and/or reckless disregard of the rights and interests of the corporation, its shareholders, and for acting without the reasonable and ordinary care which they owed the corporation.
Cohen has also sued for being fired, which he called a retaliatory personnel action in violation of Florida's Whistleblower Act at §448.102(3), Florida Statutes, breach of written contract, breach of oral contract, and wrongful termination.
For a full copy of the suits, see Hillsborough Court # 14-CA-010970, and United States District Court for the District of New Jersey Case 1:14-CV-07074-RMB
SOURCE Gary Cohen