Diamond CBD Initiates 8-Count Legal Action Against T1 Payments Over Disputed Reserve Funds in Nevada District Court

Diamond CBD Ltd., operating as First Capital Venture Co. and a fully owned subsidiary of PotNetwork Holdings, Inc. (OTC Pink: POTN), has moved forward with litigation against T1 Payments, LLC and its principal Donald Kasdon in the District Court of Clark County, Las Vegas. The case, filed on May 14, 2021, under case number A-21-834626-B, centers on allegations of improper fund management and contractual violations spanning multiple legal theories.

The Core Dispute: Retained Funds and Contractual Obligations

At the heart of the Diamond CBD lawsuit lies a straightforward claim: approximately $649,311.73 in reserve funds have been wrongfully withheld by T1 Payments despite being contractually obligated to remit them. Prior to initiating formal legal proceedings, Diamond CBD had issued a formal demand for the return of these funds. While the Defendants subsequently acknowledged possession of the money, they have not made restitution to date, prompting the escalation to court action.

The complaint encompasses eight distinct counts alleging violations across both federal and state law. These charges include fraud, conversion, theft, breach of contract, violation of the implied covenant of good faith and fair dealing, and unjust enrichment. Additionally, Diamond CBD seeks declaratory relief to establish the legal boundaries of the parties’ obligations.

Legal Team and Procedural Strategy

Representing Diamond CBD’s interests is a coordinated legal effort led by Nation Lawyers Chartered, with Jonathan Jaffe, Esquire, serving as general counsel. The firm has partnered with Nevada-based Mincin Law, PLLC, for local court proceedings and special counsel Global Legal Law Firm headquartered in Solana Beach, California.

To accelerate resolution, Nevada counsel has petitioned for business court designation, which would provide expedited handling appropriate to the commercial nature of the dispute. This procedural move underscores the parties’ interest in swift adjudication of the fund retention matter.

Remedies Sought

Beyond monetary recovery of the withheld funds, Diamond CBD is pursuing declaratory relief to clarify the legal obligations between the parties, monetary judgment for damages incurred, and punitive damages reflecting the nature of the alleged wrongdoing. The plaintiff reserves the right to pursue all other available remedies as the case proceeds through the Nevada court system.

This litigation represents a significant commercial dispute involving substantial sums and competing interpretations of contractual performance obligations between the parties.