Rocky Mountain Wins Appeal of $3.5 Million Worker Stock Dispute

Rocky Mountain High Brands Inc. will recover $3.5 million from a former employee who sold 1 million shares of his stock without the company’s knowledge, after a divided Texas appeals court held that it wasn’t a double recovery.

The question here in this case was if the single-recovery rule—which entitles a plaintiff to only one recovery for the same loss—permits multiple recoveries from different defendants for a single injury, the Texas Court of Appeals, Fifth District said Tuesday.

Grisaffi, who worked as a director and officer for Rocky Mountain, had 10 million shares in a trust for his children. One ...