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MassRoots Files Suit Against Former CEO

MassRoots Files Suit Against Former CEO

MassRoots Inc (OTC: MSRT), a nano-cap provider of an online platform that allows consumers to provide reviews of cannabis strains and products, confirmed in a press release after Tuesday's market close it that filed a lawsuit against former CEO Isaac Dietrich.

Chatter that Dietrich was ousted by the board of directors intensified in early October.

The lawsuit alleges that Dietrich intentionally misappropriated MassRoots' funds, including making unauthorized payments to himself and other third parties on his behalf in excess of $250,000. The company believes this constitutes "wrongful conversion and civil theft of company funds" to the enrichment of Dietrich.

Dietrich filed a preliminary proxy statement with the U.S. Securities and Exchange Commission with the intent of not only removing the board of directors but also retracting the lawsuit against himself.

"They're simply not true," Dietrich said Wednesday of the allegations in the lawsuit. "I believe I have the votes to remove the board of directors and therefore they're engaging in a smear campaign to get votes." 

Why It's Important

MassRoots is one of the largest technology platforms for the regulated cannabis industry, with over 1 million registered users. 

MassRoots said its recent fiscal quarter was its worst ever and it was "all Isaac Dietrich's doing."

"I have faith that the shareholders of this company will see through this ruse and recognize the folly of putting Dietrich back in charge," CEO Scott Kveton said in the press release.

Dietrich told Benzinga that MassRoots shareholders he's spoken with support him.

"My strategy is to win this vote," he said. "Once the board of directors changes, this lawsuit will be dismissed." 

Shares of MassRoots were up 3.63 percent Wednesday. 

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