Fort Lauderdale, Fla – August 17, 2026 – Greenspoon Marder achieved a significant appellate victory on behalf of its client, GBB Drink Lab, Inc. (“GBB”), after the U.S. Court of Appeals for the Eleventh Circuit affirmed the district court’s decision regarding GBB’s continued standing to proceed with its claims.
In the underlying litigation pending in the Southern District of Florida, GBB alleges trade secret misappropriation and breach of a mutual non-disclosure agreement arising from FSD Biosciences, Inc. and FSD Pharma Inc.’s alleged use of GBB’s confidential and proprietary information, obtained during discussions regarding a potential acquisition transaction, to develop a competing rapid blood alcohol detoxification beverage.
During the litigation, a dispute arose concerning GBB’s standing after an asset transfer to a third party included language that encompassed the claims asserted in the lawsuit. The transaction documents were subsequently amended to clarify that the litigation claims were not transferred. The district court held that although GBB temporarily lost standing when the claims were transferred, the later amendment cured the standing defect and allowed the case to proceed.
FSD petitioned the U.S. Court of Appeals for the Eleventh Circuit for a writ of mandamus directing the district court to dismiss the action for lack of subject-matter jurisdiction. On August 11, 2026, the Eleventh Circuit denied the petition, concluding that FSD had not demonstrated the “clear and indisputable” right to relief required for the extraordinary remedy of mandamus.
The decision permits GBB’s trade secret and contract claims to continue in the Southern District of Florida and provides guidance on whether a temporary loss of a plaintiff’s interest in pending claims may be cured during litigation. The appellate ruling rejects FSD’s effort to terminate the case and clears the way for the merits of GBB’s claims to be litigated in federal court.
The Greenspoon Marder team representing GBB included John H. Pelzer, Lawren A. Zann, Nathan M. Gallinat, and Meagan Nicholson.
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Greenspoon Marder LLP is a full-service law firm with over 215 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has held a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions. For more information, visit www.gmlaw.com.
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