Shayne Lynn v. Slang Worldwide, Inc.

2025 VT 30
CourtSupreme Court of Vermont
DecidedJune 13, 2025
Docket24-AP-081
StatusPublished
Cited by2 cases

This text of 2025 VT 30 (Shayne Lynn v. Slang Worldwide, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shayne Lynn v. Slang Worldwide, Inc., 2025 VT 30 (Vt. 2025).

Opinion

NOTICE: This opinion is subject to motions for reargument under V.R.A.P. 40 as well as formal revision before publication in the Vermont Reports. Readers are requested to notify the Reporter of Decisions by email at: Reporter@vtcourts.gov or by mail at: Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801, of any errors in order that corrections may be made before this opinion goes to press.

2025 VT 30

No. 24-AP-081

Shayne Lynn Supreme Court

On Appeal from v. Superior Court, Chittenden Unit, Civil Division

Slang Worldwide, Inc. et al. March Term, 2025

Helen M. Toor, J.

Pietro J. Lynn of Lynn, Lynn, Blackman & Manitsky, P.C., Burlington, for Plaintiff-Appellant.

Justin B. Barnard of Dinse P.C., Burlington, and John P. Sefick of Mintz Levin Cohn Ferris Glovsky and Popeo, P.C., New York, New York, for Defendant-Appellee.

PRESENT: Reiber, C.J., Eaton, Carroll, Cohen and Waples, JJ.

¶ 1. EATON, J. Plaintiff Shayne Lynn appeals the trial court’s dismissal of plaintiff’s

complaint for failure to state a claim. Plaintiff argues that his complaint, which alleges fraud and

negligent misrepresentation by defendants, is sufficient to meet Vermont’s pleading standards and

that the trial court erred when it held otherwise. We affirm.

¶ 2. Plaintiff’s complaint alleged the following facts, which we take as true for the

purpose of resolving the motion to dismiss. Plaintiff was the founder and majority owner of a

successful Vermont cannabis business: High Fidelity, Inc. In late 2020, defendants Peter Miller

and Christopher Driessen, who controlled defendant Slang Worldwide, Inc., approached plaintiff

and proposed creating a joint venture or merger between High Fidelity and Slang. During the course of their conversations with plaintiff, Miller and Driessen told plaintiff that Slang was “in

excellent financial shape,” was “financially sound,” and “had a bright economic future.” They

“promised that [Slang] would support an $18 million dollar investment into [High Fidelity] to

financially support [plaintiff’s] growth plans.” Miller and Driessen also sent plaintiff public

financial data, which did not indicate that Slang was “teetering on the edge of insolvency.”1 They

eventually persuaded plaintiff to enter into a merger agreement that involved exchanging High

Fidelity shares for shares in Slang and the creation of a soon-to-be established subsidiary: Slang

Vermont, Inc. The parties signed the merger agreement in June 2021.

¶ 3. However, Slang’s financial situation was not as rosy as Miller and Driessen’s

statements seemed to indicate. In fact, while the negotiations were ongoing, Slang was losing

money and needed an influx of cash to support its ongoing operations. Specifically, Slang required

valuable assets like High Fidelity to attract lenders.

¶ 4. Plaintiff did not discover Slang’s true financial situation until a board of directors

meeting a few weeks after the merger. At that meeting, plaintiff learned that Slang needed to

borrow $18 million to survive. The terms of that loan were onerous and ceded significant control

to the lenders. Soon afterwards, plaintiff was terminated from running Slang’s Vermont operations

to cut costs.

¶ 5. Plaintiff then filed suit, asserting that he would not have agreed to merge High

Fidelity with Slang had he known Slang’s true financial status, and that he suffered significant

financial loss as a result of Miller and Driessen’s misrepresentations. Plaintiff claimed that

1 Defendants assert that they provided plaintiff with publicly available data that did, in fact, accurately demonstrate Slang’s financial situation. They ask that this Court take judicial notice of regulatory filings from the Canadian Securities Exchange Listing that “provide an unvarnished picture of [Slang’s] financial status.” We decline to do so. When reviewing a motion to dismiss we “assume that the facts pleaded in the complaint are true and make all reasonable inferences in the plaintiff’s favor.” Fleurrey v. Dep’t of Aging & Indep. Living, 2023 VT 11, ¶ 4, 217 Vt. 527, 292 A.3d 1219 (quotation omitted). 2 defendants Slang Worldwide, Inc., Slang Vermont, Inc., and Miller and Driessen, engaged in fraud

and negligent misrepresentation.

¶ 6. Defendants moved to dismiss plaintiff’s complaint. The court granted their motion,

holding that plaintiff failed to allege any actionable misrepresentations that would support a claim

of fraud, and failed to allege the existence of any duty or justifiable reliance on the statements to

support his claim of negligent misrepresentation. This appeal followed.

¶ 7. On appeal, plaintiff argues that he adequately stated claims for fraudulent

inducement and negligent misrepresentation.2

¶ 8. This Court reviews “decisions on a motion to dismiss de novo under the same

standard as the trial court,” and we “will uphold a motion to dismiss for failure to state a claim

only if it is beyond doubt that there exist no facts or circumstances that would entitle the plaintiff

to relief.” Birchwood Land Co. v. Krizan, 2015 VT 37, ¶ 6, 198 Vt. 420, 115 A.3d 1009 (quotation

omitted). When analyzing the motion, we “assume as true all facts as pleaded in the complaint,

accept as true all reasonable inferences derived therefrom, and assume as false all contravening

assertions in the defendant’s pleadings.” Id. (citation omitted). However, the Court is “not

required to accept conclusory allegations or legal conclusions masquerading as factual

conclusions.” Rodrigue v. Illuzzi, 2022 VT 9, ¶ 33, 216 Vt. 308, 278 A.3d 980 (quotation omitted).

I. Fraudulent-Inducement Claim

¶ 9. We begin with plaintiff’s claim of fraudulent inducement. To maintain a claim for

fraudulent inducement, the plaintiff must show “an intentional misrepresentation of existing fact,

affecting the essence of the transaction,” where “the misrepresentation was false when made and

2 In his brief, plaintiff also argues that the trial court was correct in ruling that his claims were not otherwise barred pursuant to a merger clause and a no-further-representations clause in the merger agreement between High Fidelity and Slang. Because we hold that plaintiff fails to state claims of fraudulent inducement and negligent misrepresentation, we need not and do not reach this issue. 3 known to be false by the maker, was not open to the defrauded party’s knowledge, and was relied

on by the defrauded party to his damage.” Union Bank v. Jones, 138 Vt. 115, 121, 411 A.2d 1338,

1342 (1980). To survive a motion to dismiss, typically “the threshold a plaintiff must cross in

order to meet our notice-pleading standard is exceedingly low.” Bock v. Gold, 2008 VT 81, ¶ 4,

184 Vt. 575, 959 A.2d 990 (mem.) (quotation omitted). Nonetheless, “[i]n all averments of fraud

or mistake, the circumstances constituting fraud or mistake shall be stated with particularity.”

V.R.C.P. 9(b).

¶ 10. Plaintiff’s fraudulent-inducement claim rests on three categories of statements

made by Miller and Driessen. Plaintiff alleges that Miller and Driessen misrepresented that Slang

was “financially sound,” had a “bright economic future,” and that its finances were “in excellent

shape”; promised Slang would invest $18 million in High Fidelity; and provided “publicly

available” documents to plaintiff that were “intentionally and materially misleading” and “did not

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2025 VT 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shayne-lynn-v-slang-worldwide-inc-vt-2025.