Judge Lofton pointed out several flaws in CADM’s retrial bid. Firstly, he addressed the venue appropriateness, rejecting CADM’s argument that the trial should not have been held in Los Angeles since the disputed properties were located in Riverside. He reinforced that the contracts were signed and breached in Los Angeles County, making it the proper legal venue.
Moreover, CADM’s contention that corporations like Leafire and Llulllu could not be defrauded due to their corporate status was also dismissed. Judge Lofton clarified that all entities, regardless of their nature, could be victims of fraud.
No Retrial Coming After $20M Cannabis Investor Verdict: Verdict Upheld Amidst Legal Challenges
The legal scrutiny extended to the jury’s verdict form as well, which CADM criticized for conflating different contractual breaches. However, their failure to object during the trial led to this argument’s dismissal. The judge also supported the plaintiffs’ stance that the verdict form adhered to legal standards, emphasizing that CADM did not fulfill its contractual payment obligations, which justified the claims for breach of contract and money received.
Background of the Case and the Implications
The original court proceedings in March resulted in Leafire Inc. and Llulllu LLC being awarded $17.2 million in compensatory damages and $2.1 million in punitive damages from Jianqian Gu, the owner of CADM Inc. An additional $150,000 in punitive damages was levied against six affiliate companies involved in Gu’s scheme.
