Blüm marijuana dispensary, Heidi Loeb Hegerich reach $6.3M settlement to lawsuit

The cannabis company that owns Blüm dispensary in Midtown Reno quietly reached a $6.3 million settlement with one of the local owners in February, according to the company’s financial filings. 

Heidi Loeb Hegerich, co-owner of Blüm dispensary in Midtown, alleged in a November lawsuit that her business partners at California-based Terra Tech took advantage of her and skimmed millions of dollars from the dispensary profits. The funds were being funneled to the company’s other ventures, some of which were failing, the lawsuit said…

Blüm marijuana dispensary, Heidi Loeb Hegerich reach $6.3M settlement to lawsuit
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Terra Tech denied all 50 claims of fraud, conspiracy, elder abuse and other charges.

“She’s very happy to have the situation behind her, and to move on to the next phase of her life,” said Loeb Hegerich’s attorney, Mark Simons, on Wednesday. 

Terra Tech representatives said in a financial report to the U.S. Securities and Exchange Commission that the settlement “is not an admission or acknowledgement of liability or responsibility on the part of the company in connection with the lawsuit.” 

Mikel Alvarez, formerly Loeb Hegerich’s personal assistant and friend of 15 years, was accused in the lawsuit of stealing not only money but personal belongings from Loeb Hegerich. Alvarez, who said he left the company in May to pursue a career in the gaming industry, looked up to Loeb Hegerich like a mother, he told the Reno Gazette Journal.

“She needed to do what she needed to do, but the relationship is over completely, it will never be rekindled,” said Alvarez. “I wish her the best, I wish her no ill will.”

Terra Tech executives and Loeb Hegerich opened Blüm’s Reno location in January 2017, just six months before the advent of Nevada’s legalization of recreational marijuana. Loeb

Reinvesting Loeb Hegerich’s settlement money into the marijuana industry is out of the question, according to Simons.

Loeb Hegerich, who is also a grandmother, a local philanthropist and the widow of Wingfield Springs developer David Loeb, initially viewed her investment in cannabis as “an investment to help the state and the education system,” Simons said. She knew a portion of the state income would go toward funding education, he said. 

“But given her experience she’d like to focus her attention on other ventures that will help the community more directly,” Simons said.

Terra Tech did not respond to request for comment Wednesday. 

Published June 6, 2019
Jenny Kane