Ownzones Media, the company behind 420TV, a digital network devoted to cannabis culture, is being sued over a dispute about the funds used to launch the OTT channel. Genesis Media, an investor that provided $3.1 million to Ownzones to produce cannabis-related programming for the network under an agreement struck last year, is suing the company.
According to the lawsuit, Ownzones CEO Dan Goman failed to account for how Genesis’ investment was used and also low-balled the budget required to get 420TV’s planned slate of nine original series off the ground. Variety was the first to report on the situation.
“[D]efendants Ownzones and Goman displayed willful misconduct and gross negligence in their performance by, among other ways, commingling Genesis’ funds with Ownzones’ funds and showing a conscious and voluntary disregard of the need to use reasonable care in the management of the project,” Genesis said in its legal complaint.
Genesis is asking Ownzones to return the $3.1 million it originally invested in the company (plus interest) and at least $14 million in compensatory damages, according to Variety. The investor is also demanding the return of the 420TV.com domain name and related intellectual property through the legal action.
Goman has responded to the lawsuit, saying that the claims made by Genesis are without merit. The parties are currently engaged in talks to settle the dispute, according to a rep from Ownzones.