SOURCE: CannaPharmaRx, Inc.

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March 31, 2015 08:58 ET

Lawsuits Involving Gary M. Cohen, CannaPharmaRx, and Golden Dragon Holding Co. Have Been Resolved and Dismissed

CARNEYS POINT, NJ --(Marketwired - March 31, 2015) - CannaPharmaRx, Inc. (OTCQB: CPMD), a New Jersey-based pharmaceutical company, announced today that the lawsuit filed in Florida on October 30, 2014 against CannaPharmaRx, Gary Herick, Gerry Crocker, Jim Smeeding, Mat Sherwood and Bo Liess by former CannaPharmaRx executive Gary M. Cohen has been resolved and dismissed. The parties amicably resolved their differences before any discovery occurred or before any decision by the court on the merits of any claims. Mr. Cohen had alleged various contract and employment related claims, as well as made allegations of what he believed had been corporate fraud, misappropriation, breach of fiduciary duty, and SEC or SOX violations. CannaPharmaRx and all the individuals who had been sued categorically denied all of Mr. Cohen's claims allegations, have maintained that the allegations were false, and were prepared to assert counterclaims of their own. As part of the parties' resolution, Mr. Cohen has agreed to retract his allegations.

In addition, Golden Dragon Holding Co. and Mr. Cohen have resolved their differences in Golden Dragon's lawsuit filed against Mr. Cohen on November 11, 2014 in New Jersey. Golden Dragon has dismissed its claims of libel and tortious interference. In his answer to the complaint, Mr. Cohen maintained that he had not libeled Golden Dragon or tortuously interfered with its business relationships.

About CannaPharmaRx
Our purpose is to innovate to bring cannabinoid-based therapies to market that improve patients' lives. R&D is at the heart of our mission as we work to transform advanced science and technologies into the therapies that matter most to patients and clinicians. Our executive management team has over 100 years of combined pharmaceutical industry experience developing and marketing prescription products. For more information, please visit www.CannaPharmaRx.com. 

Forward-Looking Statements
Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as "anticipate," "believe," "forecast," "estimated," and "intend," among others. These forward-looking statements are based on CannaPharmaRx's current expectations and actual results could differ materially. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, substantial competition; our ability to continue as a going concern; our need for additional financing; uncertainties of patent protection and litigation; clinical trials involve a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future trial results; uncertainties of government or third party payer reimbursement; limited sales and marketing efforts and dependence upon fourth parties; and risks related to failure to obtain FDA clearances or approvals and noncompliance with FDA regulations. As with any pharmaceutical products under development, there are significant risks in the development, regulatory approval and commercialization of new products. There are no guarantees that future clinical trials discussed in this press release will be completed or successful or that any product will receive regulatory approval for any indication or prove to be commercially successful. CannaPharmaRx does not undertake any obligation to update or revise any forward-looking statement. Investors should read the risk factors set forth in CannaPharmaRx's Annual Report on Form 10-K for the year ended December 31, 2013 and Quarterly Report on Form 10-Q as of September 30, 2014 and other periodic reports filed with the Securities and Exchange Commission.

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