Bob Marley Estate Sues Tilray Brand Cannabis Company For $11.3M

Tilray is accused of moving the liability for the Marley licensing payments into an empty business entity.

The Bob Marley estate has filed an $11.3 million lawsuit against the global cannabis company Tilray Brand Inc., Bloomberg Law reports.

Marley Green LLC claims that Tilray and its partners owe licensing royalties for the Marley Natural brand. The lawsuit, filed March 27 in Delaware, alleges that Tilray engaged in a “scheme to defraud” to avoid its financial obligations to the estate.

The estate claims that after Tilray acquired Privateer Holdings, the original partner, in 2019, the company engaged in a fraudulent transfer by structuring corporate entities to shield assets.

Specifically, Tilray is accused of shifting liability for the Marley licensing payments to an empty business entity that lacked the funds to pay the contractually mandated minimum royalties. That led to a breach of contract, prompting the estate to terminate the licensing deal after the unpaid balance reached nearly $13 million by 2023.

While $1.7 million was recovered from a subsidiary, the estate is seeking the remaining balance.

The partnership between Tilray dates back to 2014, when the Marley family partnered with Privateer Holdings to launch Marley Natural as the world’s first global cannabis brand. Under the leadership of Bob Marley’s daughter, Cedella Marley, the estate manages a massive portfolio of brands, including Tuff Gong, Marley Coffee, and House of Marley.

Notably, Cedella has been successful in previous suits, including a 2015 trademark infringement victory and a 2017 award against a former coffee partner. Tilray argues that its primary business entities are not parties to the original agreement following corporate restructuring.

However, the Bob Marley estate is now challenging the move as a bad-faith effort to escape liability. The lawsuit is another setback, as 24/7 Wall Street that as of April 2, the company’s stock has declined by 4 percent.