A federal judge has dismissed a breach of contract lawsuit between two cannabis payment technology companies concerning a $500,000 payment dispute.
U.S. District Judge Richard A. Jones approved the stipulated motion to dismiss all claims with prejudice, effectively closing the case without awarding costs or fees to either party. The dismissal, filed in the Western District of Washington, did not disclose reasons behind the parties’ decision to end the litigation.
The case originated in February 2024 when Nevada-based HPR Holdings Inc., formerly known as Hypur Inc., filed suit against POSaBIT Payments Inc. and its Canadian parent company, POSaBIT Systems Corp. The suit alleged that POSaBIT failed to fulfill the final $500,000 “cash holdback” payment tied to a 2023 asset purchase agreement.
According to the complaint, POSaBIT acquired Hypur’s assets for $1.5 million upfront (minus the $500,000 holdback), along with over 6.2 million shares of stock. The holdback payment was due on October 4, 2023. HPR claimed the payment was never made and that a subsequent demand letter sent in January 2024 went unanswered. HPR sought damages of at least $500,000, plus fees and interest, under Washington and Delaware law.
HPR Holdings Inc. was represented by Clifford S. Davidson and Kelsey M. Benedick of Snell & Wilmer LLP. POSaBIT entities were represented by Zana Bugajghis, Jonathan B. Engel, and Monder Khoury of Davis Wright Tremaine LLP.
The case is HPR Holdings Inc. v. POSaBIT Payment Inc. et al., case number 2:24-cv-00187, in the U.S. District Court for the Western District of Washington.
