Pot Startup Crowdfunding Its Legal Fees

Loading...
Loading...
Nestdrop
, a mobile app that allows California residents to order medial marijuana and alcohol to be delivered to their door, is facing some pretty hefty legal fees and they're asking supporters to help foot the bill. The company expanded its alcohol delivery services to include marijuana in October, but was
sued
by city Attorney Mike Feuer this month for violating newly passed restrictions governing Los Angeles marijuana sales. Nestdrop says it is being unfairly prosecuted and claims that it hasn't violated any laws. The company's service connects people to local dispensaries, but Nestrdop itself doesn't grow or transport the drug. For that reason, co-founder Michael Pycher says the company should not be targeted. A recent amendment to California's marijuana laws reduced the number of dispensaries allowed to operate in Los Angeles; and its under that new rule that Feuer says Nestdrop should be shut down. However Pycher says just the opposite is true. He claims that Nestdrop's delivery service actually reduces the need for brick and mortar storefronts. In a ruling on Thursday, the California courts ordered Nestdrop to suspend its marijuana deliveries until the lawsuit is over. Since the mobile app startup is still in its infancy, it lacks the cash to defend itself against what it says is an unfounded lawsuit. After sending a
letter
to Feuer asking that they work together to drop the charges and receiving no reply, the company began to plan for the worst— an expensive legal battle. Nestdrop is expecting to spend roughly $70 thousand defending itself in this case, so the company has created a
crowdfunding page
on GoFundMe to ask for the public's help. The marijuana delivery app is hoping that other marijuana related businesses, supporters and pot-smokers will pitch in to help the company get through the lawsuit unscathed. So far, they've raised $1,260 in the 3 days the campaign has been active.
Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
Posted In: NewsTop StoriesMarketscrowdfundingmarijuanaNestdrop
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...