Kasowitz, on behalf of Cannabis Payment Company Spence, Wins Motion to Compel Production of Documents from FIS’s CEO

Kasowitz Benson Torres and co-counsel Swanson, Martin & Bell, on behalf of Emerging Industry Technologies d/b/a Spence Labs, a startup state-of-the-art payment processing products for the cannabis industry, won a motion to compel Fidelity National Information Services (“FIS”) Global CEO Stephanie Ferris to produce documents and communications with respect to Spence Lab’s fraud and breach-of-contract claims against FIS, a billion-dollar financial services behemoth.

On April 9, 2024, the Court ordered Ms. Ferris to produce the ESI, noting that Spence Lab’s complaint explicitly alleges that Ms. Ferris was kept apprised of the status of negotiations between the parties as they attempted to form a business partnership, Ms. Ferris’ approval was required before the parties could engage in due diligence, and “her role as a high-level decision-maker may make her views and communications extremely valuable to the case.”

As alleged in the complaint, following extensive negotiations and due diligence, FIS and Spence formed a partnership—approved by Ms. Ferris—under which Spence would develop, and serve as FIS’s exclusive preferred provider for, financial technology for legalized cannabis dispensaries, which typically transact only in cash.  FIS publicly touted that FIS and Spence “have aligned to deliver conventional payment methods to the cannabis industry;” “[t]hrough our combined capabilities, weʼre offering a transparent, fully integrated suite of digital payments;” and asked Spence’s and FIS’s own employees to tell the market that FIS’s subsidiary Worldpay (now partially owned by GTCR) and Spence “are partners.”  Spence, in turn, began working tirelessly, dedicating all of its resources to develop the products that FIS was promoting to the cannabis industry.  FIS, however, refuses to move forward with the partnership and uphold its end of the bargain, forcing Spence out of business.  Spence Labs seeks to recover the damages it has suffered as a result of FIS’s breach of contract and fraud.

The Kasowitz Benson Torres team representing Spence Labs is led by partner Andrew L. Schwartz and includes associate Sabrina Baig.  The Swanson, Martin & Bell team is led by partner William D. Patterson and include associate Benjamin Lothson.