COLORADO: MassRoots, Inc., a leading technology platform for the legal cannabis industry, announced that on November 14, 2017 it filed a lawsuit in District Court in Denver, Colorado against its former CEO, Isaac Dietrich. The complaint alleges, among other things, that Dietrich intentionally misappropriated Company funds and engaged in self-dealing by causing MassRoots to make unauthorized payments to him and third parties on his behalf, for his personal benefit, in various amounts totaling in excess of $250,000, which also constituted a wrongful conversion and civil theft of Company funds, and that Mr. Dietrich has been unjustly enriched as a consequence of the foregoing. The complaint also alleges that Dietrich has intentionally violated the Separation Agreement he signed with the Company.
Scott Kveton, MassRoots CEO, stated “The days of Isaac Dietrich treating this Company like his personal piggybank are over. It is not surprising to us that only a few days after we filed our lawsuit against him, he filed a preliminary proxy statement with the SEC with the intent to remove the Board and retract the lawsuit against him. I have faith that the shareholders of this Company will see through this ruse and recognize the folly of putting Dietrich back in charge.”
Kveton continued, “Our last fiscal quarter was the worst quarter MassRoots ever recorded, and it was all Isaac Dietrich’s doing. Moreover, misappropriation of Company funds and illegal drug use at the workplace are unacceptable on any level. We intend to enforce the standstill provisions of the Separation Agreement as we believe engaging in a protracted proxy contest now would be a huge waste of our Company resources and a diversion by Isaac Dietrich to avoid the potential consequences of his wrongdoings. We have also been in touch with the appropriate local and Federal authorities on these matters.”