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Hemp, Inc. Announces that it Will Proceed with its Lawsuit Against American Hemp Seed Genetics, LLC

LAS VEGAS, NV, May 03, 2020 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE – Hemp, Inc. (OTC PINK: HEMP) announced today that the Company is now able to proceed in a lawsuit against American Hemp Seed Genetics, LLC in the Court of Appeals of North Carolina.

American Hemp Seed Genetic (AHSG) is managed by Jerry Norton of Salem, Oregon. AHSG entered into a contractual agreement with Hemp, Inc.’s wholly owned subsidiary, Industrial Hemp Manufacturing, LLC (IHM), on April 26, 2018.

On October 12, 2018, Hemp, Inc.’s wholly owned subsidiary, Industrial Hemp Manufacturing, LLC (IHM) (Plaintiff), filed a lawsuit against American Hemp Seed Genetic (AHSG) for: Breach of Contract, Breach of Express Warranty, Breach of Implied Warranty of Fitness for a Particular Purpose, Breach of Implied Warranty of Merchantability, Intentional Misrepresentation, Negligent Misrepresentation, Incidental and Consequential Damages, Unfair and Deceptive Trade Practices, and Fraud.

Background on Lawsuit

According to Hemp, Inc. executives, Jerry Norton of AHSG convinced IHM executives that the seeds IHM were to purchase had excellent genetics and were the right seeds for planting in North Carolina’s soil and climate. Thus, IHM agreed to purchase said seeds in order to plant 1,000 acres of hemp for biomass. Norton recommended one pound of seeds per ten acres of land with 100% germination. Norton assured IHM his seeds had a 97% germination rate and to make up for the expected 3% failure rate, he added 3 more pounds of seed for a total of 103 pounds of seed.

Seeds were sent to IHM in North Carolina, per contract. Upon receiving the seeds, IHM did a test for germination and found the seeds had a germination rate in the high teens, much lower than the 97% germination rate that Jerry Norton had assured IHM of. Confounded by the results, IHM sent the seeds out for professional germination testing by experts who were able to get a 24% germination rate; higher than IHM’s first test but still disturbingly lower than what Norton had promised.

Jerry Norton was informed of the results and of the seeds’ failure to germinate properly. At that point, IHM demanded the return of their $70,000 payment with the return of the seeds back to Norton. Norton refused to refund IHM’s payment, did not accept the seeds back, and refused to discuss it further.

As a result of his intransigence, IHM had no choice but to file a lawsuit against AHSG.

Recent Developments

The filing took place on October 12, 2018. AHSG moved to dismiss the lawsuit for lack of personal jurisdiction on December 31, 2018. That motion was denied on February 25, 2019.

AHSG entered an appeal on March 18, 2019. Norton was able to delay the trial for almost one year which prolonged the inevitable.

However, the contract had a clause that was quoted by the appellate judge in denying AHSG’s appeal, “[a]ny dispute arising out of or related to this Agreement shall be venued [sic] in Raleigh, North Carolina.”

On March 3, 2020, AHSG’s appeal was denied which has allowed for IHM to proceed with the lawsuit.

“This was an unfortunate situation that will take more time but we won’t quit until this has been adjudicated. This lawsuit could award IHM $10,000,000 or more for incidental and consequential damages so it’s worth the wait,” said Bruce Perlowin, CEO of Hemp, Inc.

To view documents and reports pertaining to the lawsuit (INDUSTRIAL HEMP MANUFACTURING, LLC, Plaintiff, V. AMERICAN HEMP SEED GENETIC LLC, Defendant) click here. To read the recent article published by “Law360 Hemp Seed Seller (Jerry Norton) Can’t Dodge Suit Over $700K Deal”, click here.

Hemp, Inc. is a global leader in the industrial hemp industry with bi-coastal processing centers, including the largest multipurpose industrial hemp processing facility in the western hemisphere. To read more about Hemp, Inc.’s Year-to-Date Milestones, Highlights, and Pending Developments, click here.

To see 1-minute videos of Hemp, Inc.’s current activities, go to Bruce Perlowin’s personal Facebook page where he posts daily on all of Hemp, Inc.’s activities around the country.


What is Hemp, Inc.? With a deep-rooted social and environmental mission at its core, Hemp, Inc. seeks to build a business constituency for the American small farmer, the American veteran, and other groups experiencing the ever-increasing disparity between tapering income and soaring expenses. As a leader in the industrial hemp industry with ownership of the largest commercial multi-purpose industrial hemp processing facility in North America, Hemp, Inc. believes there can be tangible benefits reaped from adhering to a corporate social responsibility plan.


This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. To clarify the issue of OTC placing a stop sign next to Hemp, Inc.’s stock trading symbol, that symbol indicates Hemp, Inc. does not report their financials. As a non-reporting pink sheet company, Hemp, Inc. is not required to report. The company does, however, choose to publicly report its quarterly and yearly financials on its website. According to the company’s CEO, the OTC stop sign is a misrepresentation of that reporting fact. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties.

Contact:Hemp, Inc.855-436-7688ir@hempinc.com