Settlement for cannabis cultivator after alleged regulatory violations led to dispute with investor partners

Our client was a prominent cannabis cultivator whose operation had grown in value to hundreds of millions of dollars at the height of the Green Rush.  After an overzealous law enforcement operation resulted in a technical but harmless regulatory violation, our client’s investor partners sued, claiming a material adverse impact on the business and seeking tens of millions in damages and shifting of ownership interests and control.

After our client was threatened with litigation and overreaching demands to give up control of the business he had built, we responded aggressively, initiated arbitration, and developed a strategy to hold the investor partners accountable for their own interference in the business operations.

Prior to the arbitration hearing, we mediated the dispute and negotiated a restructured partnership agreement and additional funding for operations.  The settlement helped ensure that our client maintained control of the business and the ability to supply high quality flower and other products to retail operators across California.