Hashish manufacturers have been going through a major problem in accessing monetary providers since states started to legalize the plant. This wrestle has been highlighted by a recent lawsuit filed by FP Omni Applied sciences, a cannabis-friendly cost processor, towards TSYS Buying Options, LLC (“TSYS”), a subsidiary of World Funds, Inc. The lawsuit, filed within the Superior Court docket of Gwinnett County, Georgia, particulars FP Omni’s claims towards TSYS, alleging false illustration and a breach of contract.
In a press release printed on December twenty eighth, FP Omni Applied sciences, primarily based in Peachtree Metropolis, Georgia, introduced its determination to wind down operations. Since 2020, the corporate has supplied a whole bunch of dispensaries and their clients with a compliant method to course of authorized hashish transactions.
Based on the announcement, the problems resulting in the shutdown stem from FP Omni’s incapacity to proceed cost processing providers promised by TSYS. The 2 events had reportedly entered right into a long-term settlement in 2019, which FP Omni alleges TSYS has not honored. Particularly, FP Omni claims TSYS misrepresented its possession and management over the cost gateway by means of which FP Omni’s transactions have been processed and failed to offer the agreed-upon cost processing providers with out the consent of every other entity.
FP Omni believes that, on account of TSYS’ persevering with actions and inactions, the corporate may not service its clients correctly.
– Excerpt from the press launch
The lawsuit gained momentum on September 29, 2023, when the trial court docket denied TSYS’ request for dismissal. The court docket dominated that FP Omni may proceed with its claims for breach of contract, fraud, negligent misrepresentation, and breach of implied duties of fine religion and honest dealing. FP Omni seeks compensatory and punitive damages, and the newest valuation of the corporate exceeded $500 million. A duplicate of the lawsuit and court docket order might be considered on the FP Omni website.
One key side of FP Omni’s operations was its use of pin debit transactions, a technique singled out by main bank card processors earlier within the 12 months. This technique was thought-about one of many few accessible to hashish companies because of the federal illegality of hashish, which restricts conventional banking and bank card processing choices. The lawsuit and FP Omni’s subsequent shutdown spotlight the continued difficulties hashish companies face in accessing important monetary providers.
FP Omni says they’re decided to proceed their litigation towards TSYS vigorously. The corporate goals not solely to recuperate the complete worth of its misplaced enterprise but additionally to reveal the actions of TSYS and others concerned in stifling a authorized, aggressive hashish cost processing business.
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