New York Court Rules $600 Million Lawsuit Against Cannabis Producer Can Proceed | News
SYRACUSE (TNS) — A $600 million lawsuit against multistate cannabis operator Acreage Holdings and others will move forward after a New York State Supreme Court ruling against a motion to dismiss by defendants.
The lawsuit against Acreage — one of 10 registered medical cannabis operators in New York City — and nearly 30 other defendants alleges the company participated in a scheme to illegally oust a partner from a medical marijuana license.
Judge Andrea Masley, who ruled on Friday, began hearing arguments in January on whether plaintiffs David Feder and EPMMNY, LLC, had authority to sue Acreage and other defendants.
“This is a preliminary hearing on whether Mr. Feder has the ability to pursue the case, and the judge ruled that he absolutely did,” attorney Lawrence Lonergan said. , who represents Feder. “We are very happy that the court saw things our way.”
The case could also complicate a plan for Canopy Growth of Ontario, Canada, to acquire Acreage – a deal valued at around $843 million, according to The Motley Fool, which covers the financial industry. Canopy is also named as a defendant in the lawsuit.
In addition to Acreage Holdings, the lawsuit names as defendants representatives of New Amsterdam Distributors, LLC, New York Canna, Inc., (NYCanna), and individuals, including high-profile Syracuse figures like the contractor in Dino Dixie building, former police chief Dennis DuVal and former WCNY president and CEO Robert Daino.
The lawsuit revolves around a company that Dixie, DuVal and Daino originally founded around 2013 called NYCanna, which was later acquired by Acreage Holdings, and details a number of mergers, takeovers and other complicated transactions in the history of the company.
Originally filed in November 2018, the lawsuit alleges that the EPMMNY was instrumental in obtaining the medical marijuana license under which Acreage currently operates, and that the defendants breached an ownership, management and control agreement. commercial license.
The amended 230-page lawsuit filed in October seeks $200 million — the amount the plaintiffs claim the license is worth — plus $400 million in punitive damages and control of the license.