By VDC staff

The Vermont Supreme Court on June 20 affirmed the dismissal of a lawsuit filed by Shayne Lynn, founder of the Vermont cannabis company High Fidelity, Inc., against Slang Worldwide and Peter Miller and Christopher Driessen. Lynn alleged fraud and negligent misrepresentation concerning the merger of his company with Slang. The court disagreed.

Court records say Lynn was approached in late 2020 by Miller and Driessen with a proposed joint venture or merger, allegedly telling Lynn that Slang was “in excellent financial shape,” “financially sound,” and “had a bright economic future”. Lynn also claimed they “promised that Slang would support an $18 million dollar investment” into High Fidelity to back his growth plans, and provided “public financial data” that did not suggest Slang was near insolvency.

Based on these representations, Lynn agreed to a merger in June 2021, exchanging his High Fidelity shares for Slang shares. However, just weeks after the merger, Lynn discovered at a board meeting that Slang needed to borrow $18 million simply “to survive,” with “onerous” loan terms. Soon after, Lynn was terminated from running Slang’s Vermont operations to cut costs. Lynn asserted he suffered significant financial loss and would not have merged High Fidelity had he known Slang’s true financial status.

The trial court initially granted the defendants’ motion to dismiss, ruling that Lynn failed to allege actionable misrepresentations for fraud and did not sufficiently allege a duty or justifiable reliance for negligent misrepresentation. The Supreme Court reviewed this decision and upheld the dismissal.

Welch holds listening tour about flooding, FEMA bill

Concerned about the slow movement of FEMA as the anniversary of the two July floods approach, Sen. Peter Welch will hold listening sessions next month across Vermont about his Disaster Survivors Fairness Act legislation now before Congress. 

The dates, times and locations are:

• Tuesday, July 1 at 5:30pm at the Burke Mountain Hotel & Conference Center in Burke
• Wednesday, July 2 at 9:30am at the Killington Pico Area Association in Killington
• Monday, July 7 at 9:30am at the Barre Social Club in Barre.

Sanders applauds restored Covid $$ for VT schools

Sen. Bernie Sanders June 27 announced that the Department of Education reversed its decision to cancel nearly $17 million in federal K-12 COVID-19 funding for Vermont school districts and some $2.5 billion for schools across the country. The administration’s announcement follows a successful lawsuit led by 16 states and the District of Columbia to prevent the department from revoking this important education funding.

Sanders worked with Secretary of Education Linda McMahon to make certain that Vermont received its fair share. Sanders and his staff also worked with 19 school districts in Vermont to submit 88 applications to appeal these cancellations.

‘Some districts will use funds to operate summer and afterschool programs, replace or repair HVAC systems, improve their career and technical education programs and equipment, teachers in evidence-based literacy instruction, and expand students’ access to mental health services,” Sanders Press Secretary Patrick Barham Quesada told VDC.