Former partner companies split after firing of Budbo executives
Huntington Beach, CA, September 18, 2019 – LaneAxis, Inc. and CEO Rick Burnett have reached a settlement agreement with the former corporate officers of Budbo, Inc., bringing to an end a lawsuit filed by the plaintiffs in late 2018. Of greatest importance to LaneAxis and Mr. Burnett, he has been released from any and all claims that he improperly transferred corporate funds to himself. Several weeks prior to the scurrilous allegations set forth in the lawsuit, Mr. Burnett, who at the time also served as Budbo CEO, fired the plaintiffs from their positions as Budbo corporate officers.
Budbo, a mobile app focused on the cannabis sector, and LaneAxis, a data analytics and real-time tracking tool for the freight transportation industry, formed a corporate partnership in April, 2017 at which time Burnett assumed the title of Budbo CEO. In early 2018, Budbo held a successful Initial Token Offering (ITO) as part of its strategy to create a blockchain solution for cannabis companies. That strategy included plans to integrate LaneAxis’ proprietary tracking technology into its platform.
Shortly after returning from an overseas trip to promote the token offering in late spring, 2018, Burnett and the Budbo team had differences of opinion regarding numerous issues, including corporate strategy. In June of 2018, Mr. Burnett’s Budbo email account was shut down without warning, effectively eliminating his ability to properly lead the company. The email account was never restored.
The lawsuit filed in November 2018 by the Budbo officers claimed Mr. Burnett had improperly transferred funds from Budbo accounts to himself – accounts of which Mr. Burnett never had access to. In May, 2019, LaneAxis proceeded to file a detailed motion to dismiss the lawsuit. Weeks later, the plaintiffs and their legal counsel moved, in earnest, to settle the case – which provided that Mr. Burnett was not obliged to pay a single penny of the money that was allegedly transferred improperly.
“It’s certainly unfortunate that the relationship between LaneAxis and Budbo ended the way it did,” said Burnett. “But as I maintained from the beginning, the suggestion that I did absolutely anything inappropriate with company funds was completely baseless from the start, particularly as I never had access to distribute any of the wallet funds.”
The lawsuit settlement rescinds the initial shareholder agreement, allowing the Plaintiffs to return to their original company. The settlement also establishes a governing body, known as a Decentralized Autonomous Organization (DAO), to oversee management of tokens sold during the Budbo ITO.
LaneAxis is currently developing the first-of-its kind Professional Driver App and Transportation Data Network focused on connecting shippers directly to drivers. Visit www.LaneAxis.com to learn more.
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