A consumer lawsuit filed against California marijuana delivery giant Eaze was formally dropped after the two sides reached a settlement agreement.
According to Law360, the two plaintiffs who agreed to withdraw the suit they filed in 2018 are now “hashing out the details” of a settlement.
The case had been on hold because both Eaze and the plaintiffs asked a judge in 2020 not to rule until the U.S. Supreme Court decided on a related case involving Facebook and automatic telephone dialing systems.
The Supreme Court ruled unanimously in April that autodialing machines “use a random or sequential number generator.”
That ruling is expected to have a major impact on the number of spam-related lawsuits involving text messages brought against marijuana businesses such as Eaze under the federal Telephone Consumer Protection Act (TCPA), Law360 reported.
Eaze contended during the suit that at least one of the plaintiffs had signed up for messages from the company and therefore was bound by its terms of service. Those terms include mandatory arbitration in the event of a legal dispute such as this. Eaze also argued the other plaintiff had received messages stemming from a “third party error.”
This is at least the second such lawsuit filed against Eaze.
The first was also filed in 2018, and was sent to arbitration.