In a lawsuit filed Sept. 23, Avail Professional Services, along with CEO Joseph Dassoldo, accused Chay Lindsay Galligan and her startup company, the Alabama Cannabis Industry Association, of fraud, misrepresentation and breach of contract over a $15,000 sponsorship deal.
The lawsuit, filed in Montgomery County Circuit Court, details how the sponsorship, originally agreed to in August 2023, was intended to promote Avail through social media marketing. However, the promotional efforts fell far short of expectations, according to the complaint.
“Dassoldo, through Avail, is a member of the Alabama Medical Marijuana Commission (AMCC) and does business in Montgomery and throughout the state of Alabama,” the complaint states.
On its LinkedIn page, the Alabama Cannabis Industry Association states, “We are the voice for Alabamians who are passionate about medical cannabis. Medical product innovators, manufacturers, dispensaries and patients have stories to tell. We promote common sense, pro-cannabis legislation to ensure access to safe, effective and affordable medical cannabis products.” Galligan's LinkedIn profile lists her as the “Founding CEO of the 501(c)(6) Alabama Cannabis Industry Association.”
The sponsorship agreements detailed in the complaint were intended to increase Avail's brand awareness and reach a wider audience through social media promotion. Dassoldo and his company allege the agreements were used to obtain sponsorship from other companies under false pretenses. The complaint alleges that Galligan and her association “exploited” Avail's reputation and image to attract additional sponsors. As a result, other companies familiar with Avail's status in the industry were reportedly lured into sponsorship deals, further benefiting Galligan's association without providing Avail with commensurate value.
According to the complaint, the only marketing material created in connection with the sponsorship was a single post by Galligan's association on LinkedIn, which did not garner any significant attention or views. “Marketing conducted on behalf of Dassoldo consisted of a single post on the social media outlet LinkedIn,” the complaint explains, adding that the post received very little response, and the only notable responses were from people already affiliated with Dassoldo and Avail.
The complaint provides a detailed timeline of events: On August 1, 2023, Dassold entered into a sponsorship agreement that he believed would lead to strong promotion. An invoice dated August 1, 2023 was sent to Avail and is attached as Exhibit B. Then, on August 2, 2023, Garrigan provided wire instructions for $15,000, and the funds were wired by August 5, 2023.
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“Abeille claims that the limited exposure provided in exchange for the $15,000 payment did not satisfy its contractual obligations and that Galligan's conduct was fraudulent. The lawsuit further alleges that Galligan knowingly misrepresented the scope of his marketing efforts and led Avail to believe that the sponsorship would lead to significant recognition on various social media platforms and at industry events.”
“After Avail entered into its sponsorship agreement, other vendors and companies also agreed to sponsorship agreements, thereby allowing the Association to derive greater benefits from Avail's sponsorship agreement,” the complaint continues, suggesting that the Galligan Society unfairly benefited from Avail's established reputation in the industry.
In seeking relief, Avail is not only seeking monetary damages to recoup the $15,000 it paid, but also an injunction to prevent Galligan from further misuse of its brand, demanding that Galligan and her organizations cease all use of Avail's likeness and image, and seeking damages for damages caused by the alleged deceptive sponsorship scheme.
As of now, Galligan has not publicly responded to the allegations.
