MassRoots, a marijuana social media app, has alleged that the company’s founder, Isaac Dietrich, stole over $250,000. MassRoots was launched in 2013 by Dietrich, who was ousted from his position as CEO last month.
Stealing money isn’t the only crime MassRoots is accusing Dietrich of, according to The Seattle Times. The company is also accusing him of illegal drug use and “improper sexual activities.” A civil lawsuit was filed on November 14. Despite the lawsuit, Dietrich remains on the MassRoots board of directors.
Dietrich says the lawsuit is “frivolous” and “completely unfounded.” He plans to start working on ousting his three fellow board members.
MassRoots remained quiet about the reasons they wanted Dietrich removed from his position in the company. Scott Kveton was named the new CEO.
The lawsuit says, “Dietrich has been unjustly enriched by paying himself and others, amounts in excess of $250,000 without authorization and without Company approval.” The suit is calling this “civil theft of Company funds.”
The company says that Dietrich deliberately concealed transactions from the other board of directors knowing that they’d object to the transactions.
MassRoots hasn’t specified a specific monetary compensation penalty, but Dietrich has said that, “MassRoots is entitled to three times the amount of its damages, together with costs and reasonable attorney’s fees.”
Dietrich has also mentioned that following an audit in September, “no material deficiencies on the books” were found.
Dietrich is filing a proxy to move forward with taking a shareholder vote to replace the board of directors. He said, “The proxy is being filed today, so it’s going to be very fast. I think within 48 hours of the definitive proxy being filed, I will have the votes to remove the board. This lawsuit is not going to have any impact on that vote, and I’m still going to win by a very large margin.”
Dietrich fully intends on reobtaining his position of CEO of MassRoots as soon as possible. He said, “When I’m back in control of the company, my first act of business is going to be nullifying this lawsuit.”