Federal Judge Dismisses Lawsuit Against Cannabis Brand by Former Partners

A federal judge last week dismissed the lawsuit against Flavorade Extracts founder Nick Coburn, filed by his former company, that accuses Coburn and his partners of misappropriating trade secrets and interfering with business relationships, among other claims. The lawsuit by Greenmount LLC, which does business as ColdFire Extracts, was dismissed with prejudice and cannot be refiled. 

In the ruling, U.S. District Court for the Central District of California Judge Mónica Ramírez Almadani found Greenmount’s claims “without merit,” noting that “in the 15 months that this action has been pending, Plaintiff has not served a single discovery request, subpoena, or deposition notice.” 

In a statement, Coburn said the ruling “validates” what he’s “maintained from day one.” 

“After months of defending against baseless accusations, I can finally focus on my counterclaims and building Flavorade’s future. Greenmount tried to silence me about my role in creating a successful cannabis brand, but the court has now dismissed every one of Greenmount’s claims.” — Coburn in a press release 

Coburn split with Greenmount in August 2023 and launched the Flavorade brand with Cleanline Management. Greenmount filed the lawsuit against Coburn and Cleanline in December 2024, accusing Coburn and Cleanline of misappropriating trade secrets, interfering with business relationships, unfair competition, trade libel, and computer fraud.

Almadani’s decision does not end Coburn’s counterclaim lawsuit against Greenmount. At issue in the lawsuit is Coburn’s assertion of a 25% equity stake in Greenmount.

“This case has always been about honoring agreements,” Coburn said in a statement. “I’m grateful the court has dismissed the claims against me, and I look forward to the court’s consideration of my counterclaims regarding my ownership interest in Greenmount.”