V - $500M Lawsuit: Cannabis Payment Processor Accuses Global Payments Subsidiary Of Breach Of Contract | Benzinga
FP Omni Technologies, a Georgia-based company that has provided dispensaries and their customers with a compliant way to process legal cannabis transactions since 2020, is throwing in the towel. But on its way out, the company is launching a $500-million lawsuit against TSYS Acquiring Solutions, a subsidiary of Global Payments Inc (NYSE: GPN). In a Dec. 27 press release, FP Omni said its downfall "arises out of its inability to continue with the payment processing services promised” by TSYS.
What Happened
The dispute centers on a 2019 agreement wherein TSYS facilitated payment processing for merchants associated with FP Omni. In its complaint filed in 2022, FP Omni accused TSYS of falsely representing its ability to provide those contracted services through October 2024.
TSYS, says FP Omni also made promises about controlling the cannabis payment gateway, guaranteeing smooth sailing through the uncertainties of federal marijuana restrictions.
In 2021, the situation took a turn when Visa (NYSE: V), not TSYS, emerged as ...