Cookies Retail has filed a complaint against Cookies Creative Consulting and Promotions claiming the company didn’t follow through with a settlement agreement from a past lawsuit. The case lists several defendants but PTB Investment Holdings, LLC also known as GVB Biopharma is the one most referred to in the case.
This problem dates back to a 2023 lawsuit between the parties over an agreement to market and sell certain hemp-derived products under the “Cookies” brand. The complaint stated that the two settled the case with two main agreements. First, the deal between the two companies would be terminated. Second, PTB was required to purchase the remaining inventory of Cookies-branded products from Cookies Retail, and then Cookies Retail would receive a total sum of $4.75 million, payable in ten equal monthly installments beginning July 1, 2023.
Cookies Retail claims it packaged the products as agreed and then PTB was supposed to transport the products to an inspection site at its expense and within a specified timeframe. Cookies Retail also alleged that PTB didn’t make any of the agreed-upon payments. The complaint goes on to say that Cookies Retail notified PTB of the settlement breaches and sent a final default notice on March 17, 2024.
Cookies Retail says it wants either the payments owed to the or to have its property returned. The complaint also states that since the payments were missed, PTB would need to all of the payments immediately.
22nd Century Group
Also noted in the complaint, Cookies Retail claims that PTB signed an agreement with 22nd Century Group (OTC: XXVI) as soon as the Cookies Retail agreement was terminated accusing the company of orchestrating a scheme to end the original sales agreement.
These allegations claim that as soon as 22nd Century Group announced it had a new deal with PTB, its stock jumped 100%. The complaint stated, “Despite the initial stock price jump, by November 2023, XXII sold its “hemp operations,” including the newly acquired Cookies license, for a mere $2.25 million to Specialty Acquisition Corp. (“SAC”), a Nevada company affiliated with current GVB employees.”
The complaint also stated that 22nd Century purchased GVB/PTB from its owner, William “Drew” Spiegel, and then sold GVB/PTB to SAC, which is also controlled by Spiegel. “Indeed, the transactions were not conducted at arm’s length but were instead part of a broader scheme to defraud Plaintiff and concomitantly to inflate XXII’s stock price,” read the complaint.
Cookies Retail is asking for $12.5 million in damages.
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