Hughes Hubbard obtained a dismissal with prejudice for Cannabis entrepreneur Michael Pesce in a longstanding federal court battle concerning control of the Pro Green Medical cannabis processor and its Maryland processing license.
The Pro Green dispute began in 2021 and included five separate lawsuits in the Maryland federal and state courts. These cases pitted the firm's clients, Michael Pesce and Pro Green, against Hippocratic Growth Maryland Processing and its principal Ashley Colen.
Pesce sought to rescind a Stock Purchase Agreement and related instruments, which, if enforced, would have turned control of Pro Green over to Hippocratic. When Hippocratic first brought the suit in Maryland state court seeking a temporary restraining order and preliminary injunction, ousting Pesce from Pro Green, the team removed the case to federal court and defeated the restraining order and injunction motion, preserving Pesce's control of Pro Green.
The firm later successfully opposed a second attempt by Hippocratic to obtain similar injunctive relief. While the case was pending in federal court, Hippocratic launched a separate attack against Pro Green, purporting to notice a default on a revolving credit promissory note and then secretly obtaining a confession of judgment against the company and issuing writs of garnishment to numerous Pro Green stakeholders.
Upon learning of these actions, the firm's litigation team moved to vacate the confession of judgment and writs of garnishment, which the state court promptly granted, ordering Hippocratic and its counsel to contact all those who had been served with writs of garnishment and advise them of the court's remedial action in favor of Pro Green.
Hippocratic's conduct led to an additional lawsuit for tortious interference with Pro Green's business. Hippocratic then sued to obtain replevin of certain equipment in Pro Green's processing facility.
The federal case, Hippocratic Growth Maryland Processing, LLC v. Pesce, in the United States District Court for the District of Maryland, was dismissed with prejudice on Jan. 27, 2026. The state court cases were terminated last year and earlier this month.
"We are pleased to have been able to resolve these hotly contested cases, which now allows our clients to focus on their thriving cannabis businesses in Maryland, Colorado, California and New York," said Jeremy Schulman, lead partner in the dispute and the firm's Washington, DC, litigation chair. "The Pro Green disputes highlight Hughes Hubbard's expertise in navigating the fast-changing legal landscape in which cannabis companies operate and our relentless representation of clients in all phases of complex commercial litigation."
Source: Hughes Hubbard
