DENVER, April 15, 2016 /PRNewswire/ -- High Supply, the innovative packaging company that introduced cost effective branding to the cannabis industry, confirmed that it was recently ripped off by some of its former employees in a corporate espionage scheme that assisted California based Collective Supply in entering the Colorado market. As first reported in a lengthy story this week by MJbrander.com, the company moved swiftly to protect its proprietary information and filed a civil lawsuit in Denver District Court.
Testimony in a hearing in early March revealed that one of High Supply's investors met with David Weidenbach, owner of Collective Supply, shortly after the corporate espionage scheme was uncovered and questioned what Collective was trying to do, especially since Justin Walker (High Supply's former owner) had a Non Compete Agreement. Weidenbach boasted that he didn't care about Walker's Non Compete Agreement and they had a big law firm behind them and "…can drag this out for …two to three years and within six months…put us out of…business." On the witness stand, Walker admitted "with regret" that he had transmitted the confidential data to Collective. In its first ruling, the Court issued an injunction against Walker for violating his non compete agreement and banned him from various activities in the cannabis industry over the next two years, through February 2018.
After Court testimony and an ongoing investigation, assisted by private investigation firm Rick Johnson & Associates, revealed more culprits in the corporate espionage scheme, the original lawsuit was amended to include David Weidenbach of Collective Supply, who was instrumental in illegally enticing High Supply employees to provide him and his team with sensitive and proprietary corporate data. Racketeering claims have also been subsequently filed under the Colorado Organized Crime Control Act against a total of 12 defendants.
"I'm always amazed at what people think they can get away with," stated High Supply's President, Anthony Thompson, "and I am surprised at the ongoing snubbing of the Court, including a lack of response from three of the defendants who will now be subject to default judgments."
A further hearing on additional injunctive relief is imminent, and per High Supply's filed Court pleadings, the possible seizure of Collective Supply's assets and recall of all products that they've sold to High Supply's customers as a result of using High Supply's stolen proprietary information. High Supply is also preparing their evidence to be submitted to federal authorities for a criminal investigation.
Thompson added: "We are grateful that the vast majority of our customers didn't want to get caught up in an illegal espionage scheme and we keep forging ahead looking after our existing as well as adding new customers to our unique branding system."
About High Supply
Based in Denver, Colorado, High Supply is an innovative branding and packaging company that specializes in branded, child-resistant packaging for the cannabis industry.
SOURCE High Supply