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 defendant's motion to dismiss.
The lawsuit against Acreage — one of New York’s 10 registered medical cannabis operators — and nearly 30 other defendants, alleges the company participated in a scheme to illegally squeeze a partner out of a medical cannabis license.
Judge Andrea Masley, who ruled Friday, began hearing arguments in January on whether plaintiffs David Feder and EPMMNY, LLC, have authority to sue Acreage and the other defendants.
“It’s a pretrial evidentiary hearing on whether Mr. Feder had the capacity to go with the case, and the judge ruled that he absolutely did,” said attorney Lawrence Lonergan, who is representing Feder. “We’re very pleased the court saw things our way.”
According to The Motley Fool, the case could also complicate a plan for Canopy Growth of Ontario, Canada, to acquire Acreage — a deal valued at around $843 million, which covers the financial industry. Canopy is also named as a defendant in the suit.
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Complicates $843 million acquisition plan