Francis v. Mona, Jr. et al

Filing 75

ORDER Granting 74 Stipulation of dismissal with prejudice. Signed by Judge Gloria M. Navarro on 11/18/2022.; Case terminated. (Copies have been distributed pursuant to the NEF - LOE)

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Jeffery A. Garofalo (NV Bar No. 7345)
E-mail: [e-mail]
S. Todd Neal (CA Bar No. 174827 – Pro Hac Vice)
E-mail: [e-mail]
Eric A. Plourde (CA Bar No. 320451 - Pro Hac Vice)
E-mail: [e-mail]
PROCOPIO, CORY, HARGREAVES
& SAVITCH LLP
10000 W. Charleston Boulevard, Suite 140
Las Vegas, NV 89135
Telephone: [phone]
Attorneys for Defendants CV SCIENCES, INC., MICHAEL
MONA JR., MICHAEL MONA III, JOSEPH D. DOWLING,
JAMES MCNULTY, GARY SLIGAR, STEPHEN M.
SCHMITZ, EDWARD A WILSON, BART P MACKAY, and
LARRY RASKIN

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA
DAVID FRANCIS, derivatively on behalf of CV
SCIENCES, Inc. formerly known as,
CANNAVEST CORP.,

Case No. 2:18-cv-02284-GMN-NJK
Judge:
Hon. Gloria M. Navarro

Plaintiff,
v.

STIPULATION OF DISMISSAL
WITH PREJUDICE

MICHAEL MONA JR., MICHAEL MONA III,
JOSEPH D. DOWLING, BART P. MACKAY,
LARRY RASKIN, JAMES MCNULTY, GARY
SLIGAR, STEPHEN M. SCHMITZ and
EDWARD A. WILSON,

Complaint Filed:
Trial Date:

November 30, 2018
Not Set

Defendants,
and
CV SCIENCES, INC., formerly known as,
CANNAVEST CORP.,

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Nominal Defendant.

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///

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///

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STIPULATION OF DISMISSAL WITH PREJUDICE

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CASE NO. 2:18-CV-02284-GMN-NJK

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Plaintiff David Francis (“Plaintiff”) and Defendants CV Sciences, Inc. formerly known as

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CannaVEST Corp. (“CV Sciences” or the “Company”), Michael Mona, Jr., Michael Mona, III,

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Joseph D. Dowling, Bart P. Mackay, Larry Raskin, James McNulty, Gary Sligar, Stephen M.

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Schmitz, and Edward A. Wilson (collectively, “Defendants”) hereby jointly submit this Stipulation

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of Dismissal with Prejudice as follows:

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WHEREAS, on or about August 24, 2018, a class action lawsuit was filed in the United States

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District Court for the District of Nevada against the Company, Dowling, Mona, Jr., and Mona, III,

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concerning alleged wrongdoing related to the Company’s pursuit of a patent application with the

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United States Patent and Trademark Office (“USPTO”) for its product CVSI-007, styled as In

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re CV Sciences, Inc. Securities Litigation, No. 2:18-cv-01602-JAD-BNW (the “Securities

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Class Action”);

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WHEREAS, on October 10, 2018, plaintiff Girard Depoti initiated a shareholder derivative

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action Depoti v. Dowling et al., Case No. A-18-782513-C in Clark County District Court in the State

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of Nevada (the “Depoti” Action”) concerning the same or substantially similar facts to those in the

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Securities Class Action;

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WHEREAS, five additional shareholder derivative actions were filed after the Depoti Action

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concerning the same or similar facts in state and federal courts in Nevada and California, specifically:

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(1) Radcliffe v. Dowling, et al., Case No. A-19-794377-B (Nev. Dist. Ct.-Clark Cty.) (the “Radcliffe

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Action”); (2) Tarangelo v. Mona, Jr., et al., Case No. A-19-789153-B (Nev. Dist. Ct.-Clark Cty.)

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(the “Tarangelo Action”); (3) Francis v. Mona, Jr., et al., Case No. 2:18-cv-02284-GMN-NJK (D.

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Nev.) (the “Francis Action”); (4) Berry v. Dowling, et al., Case No. 3:20-CV-01072-AJB-DEB (S.D.

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Cal.); (the “Berry Action”); and (5) Menna v. Dowling, et al., Case No. 37-2021-00019613-CU-SL-

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CTL (San Diego Sup. Ct.) (the “Menna Action”) (collectively with the Depoti Action the “Derivative

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Actions”);

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WHEREAS, the parties reached a settlement of the Securities Class Action in late 2021, and

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such settlement was submitted to the District of Nevada and finally approved by Judge Jennifer A.

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Dorsey on July 22, 2022;

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STIPULATION OF DISMISSAL WITH PREJUDICE

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CASE NO. 2:18-CV-02284-GMN-NJK

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WHEREAS, the parties in the Derivative Actions recently reached a global agreement for the

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settlement of all six of the Derivative Actions, and on July 28, 2022, executed a Stipulation and

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Agreement of Settlement (the “Settlement Agreement”);

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WHEREAS, the Settlement Agreement constitutes the agreement of all parties in the six

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Derivative Actions to finally settle each of the six Derivative Actions, subject to any and all necessary

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court approval, and was executed in good faith by all parties following extensive negotiations;

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WHEREAS, the parties in the six Derivative Actions, by executing the Settlement
Agreement, consented to submission of the Settlement Agreement to the Depoti court;

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WHEREAS, the Depoti court was the appropriate court to consider the Settlement Agreement

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because the Depoti Action was the first-filed of the six Derivative Actions, the Derivative Actions

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concern the same or substantially similar facts, and all parties in the six Derivative Actions stipulated

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to submission of the Settlement Agreement to the Depoti court;

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WHEREAS, the Settlement Agreement states that “[w]ithin five (5) business days of the

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entry of the Final Order & Judgment by the [Depoti] Court, Plaintiffs will submit notices of voluntary

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dismissal in each of the other Derivative Actions;”

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WHEREAS, the parties contemplated that if the court in the Depoti Action finally approved

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the Settlement, Plaintiff in this action (and plaintiffs in each of the other Derivative Actions) would

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then seek court approval and permission to voluntarily dismiss this action (and each of the other

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Derivative Actions) as contemplated by the terms of the Settlement Agreement;

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WHEREAS, on November 15, 2022, the Depoti court, after ordering notice be provided to

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the Company’s shareholders and notice being provided in accordance therewith, and having received

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no objections from any shareholder, entered its Order and Final Judgment approving the settlement

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of the Depoti Action, a true copy of which is attached hereto as Exhibit A, dismissing with prejudice

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all claims arising out of the same facts and circumstances alleged in this action;

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NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED by Plaintiff and

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Defendants, through their undersigned counsel of record and subject to the approval of the Court, as

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follows:

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1.

In light of the Settlement and Order and Final Judgement in the Depoti Action, and
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STIPULATION OF DISMISSAL WITH PREJUDICE

CASE NO. 2:18-CV-02284-GMN-NJK

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pursuant to the terms of the Settlement Agreement, Plaintiff hereby dismisses this action, with

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prejudice, with each side to bear its own costs.

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IT IS SO STIPULATED.

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Dated this 17th day of November, 2022.

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LEVERTY & ASSOCIATES LAW CHTD.

PROCOPIO, CORY,
HARGREAVES & SAVITCH, LLP

/s/ Patrick R. Leverty
Patrick R. Leverty (Nev. Bar 8840)
Reno Gould House
832 Willow Street
Reno, NV 89502
Telephone: [phone]
Facsimile: 775.322.3953

/s/ Jeffery Garofalo
Jeffery A. Garofalo (NV Bar No. 7345)
S. Todd Neal (Pro Hac Vice)
Eric A. Plourde (Pro Hac Vice)
10000 W. Charleston Boulevard
Suite 140
Las Vegas, NV 89135
Telephone: [phone]
Facsimile: 619.788.5500

THE BROWN LAW FIRM, P.C.
Timothy Brown (Pro Hac Vice)
767 Third Avenue, Suite 2501
New York, NY 10017
Telephone: [phone]
Facsimile: 516.344.6204

Attorneys
for
Defendants
CV
SCIENCES, INC., MICHAEL MONA
JR., MICHAEL MONA III, JOSEPH D.
DOWLING, JAMES MCNULTY,
GARY SLIGAR, STEPHEN M.
SCHMITZ, EDWARD A WILSON,
BART P MACKAY, and LARRY
RASKIN

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Attorneys for Plaintiff DAVID
FRANCIS

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STIPULATION OF DISMISSAL WITH PREJUDICE

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CASE NO. 2:18-CV-02284-GMN-NJK

ORDER

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PURSUANT TO THE PARTIES’ STIPULATION, IT IS HEREBY ORDERED THAT:
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Pursuant to the terms of the Settlement Agreement, Plaintiff hereby dismisses this

action, with prejudice, with each side to bear its own costs.
IT IS SO ORDERED.

IT IS SO ORDERED. The Clerk of Court shall close the case.

18 day of November, 2022
Dated this ____
DATED: ______________________

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________________
HON. GLORIA M. NAVARRO
UNITED STATES DISTRICT JUDGE

___________________________
Gloria M. Navarro, District Judge
UNITED STATES DISTRICT COURT

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STIPULATION OF DISMISSAL WITH PREJUDICE

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CASE NO. 2:18-CV-02284-GMN-NJK