Federal Court Dismisses All Claims Against Flavorade Founder Nick Coburn "With Prejudice"

In a complete legal victory, the United States District Court for the Central District of California has dismissed ALL claims brought by Greenmount LLC (DBA ColdFire Extracts) against Nick Coburn, founder of Flavorade Extracts and creator of the ColdFire brand and their manufacturing/distribution partner Cleanline Management LLC (Case No. 2:23-cv-10376). The Court’s dismissal “WITH PREJUDICE” on April 11, 2025, means these claims cannot be refiled.

In her decisive 15-page ruling, Judge Mónica Ramírez Almadani granted Defendants’ Motion for Judgment on the Pleadings and denied Greenmount's attempt to voluntarily dismiss the case when faced with Defendants' motion. The Court described Greenmount’s conduct as "disingenuous" and condemned its “blatant tactical maneuvering” in attempting to avoid judgment on the pleadings, declaring that such tactics “shall not stand.”

The Court found Greenmount's arguments "without merit" and determined that "it is clear that in moving for voluntary dismissal, Plaintiff seeks to avoid an adverse ruling and excuse its dilatoriness." In her ruling, Judge Ramírez Almadani noted that "in the 15 months that this action has been pending, Plaintiff has not served a single discovery request, subpoena, or deposition notice," demonstrating a "failure to prosecute this action."

“This ruling validates what I've maintained from day one,” said Coburn. “After months of defending against baseless accusations, I can finally focus on my counterclaims and building Flavorade's future. Greenmount tried to silence me about my role in creating a successful cannabis brand, but the court has now dismissed every one of Greenmount’s claims.”

The Story Behind the Lawsuit

Nick Coburn was instrumental in developing the ColdFire brand, taking it from concept to becoming one of California’s leading cannabis extract brands in the marketplace. After his departure from Greenmount in August 2023, Coburn launched Flavorade Extracts and partnered with Cleanline Management to exclusively manufacture and distribute the Flavorade brand.

Greenmount LLC filed suit in December 2023, accusing Coburn and Cleanline of misappropriating trade secrets, interfering with business relationships, unfair competition, trade libel, and computer fraud. After reviewing extensive legal arguments, the Court dismissed all five claims with prejudice.

In the earlier September 2024 preliminary injunction ruling, the Court had already found that Greenmount "has not shown a likelihood of success on the merits or irreparable harm" and had "not demonstrated ownership of a trade secret." The Court noted that Greenmount had provided only "shifting—and at times irreconcilable—descriptions of its process-related trade secrets" and relied on "broad, catchall phrases" that were "wholly insufficient for the Court to discern the alleged trade secret."

“The court has spoken clearly,” stated Coburn. “Greenmount's claims have been fully dismissed, vindicating my position that I acted properly throughout my business dealings.”

Coburn’s Counterclaims Proceed

With Greenmount’s claims now dismissed, the focus shifts to Coburn’s counterclaims against Greenmount LLC and its principals: Thair Daoud, Steven Daoud, and Zaid Jadan.

At the center of these counterclaims is Coburn’s assertion of a 25% equity stake in Greenmount, which he alleges was formalized in an Operating Agreement that he signed in early 2023 after it was drafted by Greenmount’s attorney. His counterclaims also address alleged unauthorized recording in violation of California Penal Code sections 632 and 637.2.

“This case has always been about honoring agreements,” said Coburn. “I'm grateful the court has dismissed the claims against me, and I look forward to the court's consideration of my counterclaims regarding my ownership interest in Greenmount.”

About Flavorade Extracts

Flavorade Extracts has quickly established itself as a rising star in California’s cannabis extract market. Founded by Nick Coburn, Flavorade has gained recognition for its exceptional terpene profiles and commitment to quality. The brand continues to expand its presence across California’s premium cannabis retailers.

Disclaimer: The counterclaims mentioned in this release represent allegations made by Nicholas Coburn that are currently being litigated. All quotes from the Court are taken directly from the April 11, 2025 Order and the September 18, 2024 Order Denying Plaintiff’s Motion for Preliminary Injunction.