Sol Global lawsuit with Hedge fund MMCap over Verano Shares Thrown Out


A New York state court judge ruled today that Sol Global Investments never had the right to sue Canadian hedge fund MMCap and its asset backed lending fund 1235 Fund LP in New York. MMCap won their motion to dismiss the suit which was an attempt by Andy Defrancesco and Sol Global Investments to stop litigation against them in Canada tied to alleged fraud involving repayment of a $50 million loan. The loan was backed by the stock Sol Global owned in a hot cannabis IPO called Verano. Cannabis Law Report was first to report on the blockbuster litigation brought by 1235 Fund LP against Defrancesco personally which says their contract allows them to demand a $500,000,000 repayment. Judge Jennifer Schecter ruled swiftly just six days after 1235 Fund LP  filed their reply to Sol Global’s opposition to the Motion to Dismiss. Judge Schecter wrote: In the end, defendants never consented to personal jurisdiction in New York or waived the objection; thus, this action is dismissed. Moreover, jurisdictional discovery is unwarranted because the complaint does not make a sufficient start at suggesting there could even possibly be a basis for New York jurisdiction. When the news first broke on 1235 Fund’s claims Sol Global tried to say that they will be asking the Ontario courts to stay the 1235 Fund LP case because the NY State court case had been filed first. The legal move is mute now and MMCap can move forward in the proper court venue. It also appears the hedge fund wants to demand a receiver be appointed so the valuable Verano stock can be protected. It’s unclear if Defrancesco hasn’t already sold off the stock though; so 1235 Fund LP can go after his personal wealth. Andy Defrancesco smiling at the Millions he made off Sol…

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Source : Sol Global lawsuit with Hedge fund MMCap over Verano Shares Thrown Out

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