HUGE - FSD Pharma gets court complaint alleging breach of nondisclosure agreement

2023-05-12 18:13:34 ET

FSD Pharma ( NASDAQ: HUGE ) on Friday said a complaint had been filed against it in a U.S. court by GBB Drink Lab, a company that is developing an alcohol detoxification beverage.

The complaint was filed on May 1 in the southern district court of Florida and a copy of it was delivered to HUGE on Tuesday.

The complaint alleges that HUGE breached a mutual nondisclosure agreement between the parties in connection with discussions over a potential acquisition of GBB.

The complaint also claims that HUGE engaged in misappropriation of trade secrets.

"FSD has reviewed the complaint and believes that the allegations are without merit. FSD plans to vigorously defend itself against the allegations. FSD’s policy is not to discuss pending litigation," HUGE said in a statement , adding that it "ultimately did not" acquire GBB.

The company also gave an update on its plans to spin-off a yet-to-be-formed unit.

"Due to ongoing negotiations with one of the proposed assets to be included in the Spin-Out Transaction the necessary documentation for shareholder approval will not be ready in time for mailing deadline for the June 29, 2023 shareholders meeting," HUGE said.

The company will hold a separate special meeting to approve the spin-off in the future.

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