Debra Borchardt
The ongoing battle between Marley Green LLC and Tilray (NASDAQ: TLRY) continues, with the latest round involving a demand for payment of $13 million for a licensing deal.
The original deal stretches back to 2018 when Docklight Brands, which at the time was a part of Privateer Holdings, signed a licensing agreement with the late Bob Marley’s estate and its company, Marley Green. The deal authorized Docklight to license certain images of the Rastafarian singer, who was a strong advocate for the use of cannabis. Docklight then licensed that intellectual property to Tilray and High Park Holdings Ltd., a subsidiary of Tilray.
Green Market Report wrote in June that Docklight Brands filed a complaint against cannabis giant Tilray, accusing the company of backing out of a deal to sell Bob Marley-branded cannabis products in Canada. Docklight alleged that the move cost it licensing fees, royalties, and eventually the Bob Marley license itself, according to an amended complaint filed on May 31, Law 360 reported.
$13 Million Bill
In 2019, Tilray merged with Privateer, which further complicated the Marley deal. After the merger, shareholders filed a lawsuit against Tilray, claiming that Tilray fraudulently overstated the value of a deal with Authentic Brands Group Inc., which was written down by $102 million. That lawsuit was settled in March 2023 for $39 million.
It’s this settlement that is the target of the latest round of payment demands from Marley Green. Law360 reported that in July 2023, Marley Green sent Tilray a bill for $12.96 million – and Tilray sent passed that bill along to the founders of Privateer Holdings, Michael Blue, Christian Groh, and Brendan Kennedy.
The founders claim that due to the $39 million shareholder settlement, they shouldn’t have to pay this bill. While they personally guaranteed the payments in the original deal, the merger meant that Tilray was now responsible.
Law360 reported that on Friday, t
The Privateer founders filed a complaint in Delaware’s Court of Chancery on Friday, according to Law360, stating, “Plaintiffs assert any obligations they once had under the [licensing] guarantee, or any claims defendants could make pursuant to the guarantee, have been settled and released.”
The story went on to say that the three men urged the court to “enforce the terms of a $39.9-million settlement,” which by their estimation would totally free them from the $12.96 million licensing bill.
