Cannabis Lawsuit: SpringBig Being Sued By Kind+ For Creating Copycat Subscription Service

SpringBig Inc. SBIG is being sued by Kind+ Inc., a Massachusetts-based cannabis subscription service, for allegedly using its partnership to create a competing business, reported Green Market Report.

What Happened: The lawsuit asserts that SpringBig did not uphold an agreement to promote Kind’s cannabis subscription service, which it launched in 2022, to its own clients and consumers but rather used its access Kind’s technology and data to introduce a rival service last month.

SpringBig called the allegations “unfounded,” according to comments made to Law360.

Kind+ is demanding that SpringBig stop using its technology and cut off contact with existing and potential customers. It is seeking damages for alleged breach of contract, bad faith dealings and business relationship interference, including convincing at least one company to end its contract with Kind+.

The Complaint

In the complaint, Kind+ points to SpringBig’s May 3 launch of a subscription service, which it calls a “carbon copy” of its own, saying that such details as recurring benefits, discounts, sign-up offers, and loyalty rewards programs were all replicated.

The lawsuit accuses SpringBig’s CEO, Jeffrey Harris of using Kind’s pitch language during a May 4 earnings call, several weeks prior to issuing a $4 million public offering.

“At present, we are focused on the introduction of select group of new initiatives,” Harris told investors at the time. “We have launched a subscriptions offering enabling our retail clients to offer their customers to pay a subscription-based VIP loyalty program, offering those customers to subscribe the opportunity to receive specific discounts and benefits not available to their wider customer base.”

Kind+ is asking the courts to decide on monetary damage.