Company pays $6M settlement to Nevada dispensary co-owner

RENO, Nevada — A cannabis company paid a $6.3 million settlement to a Nevada dispensary co-owner who claimed the company skimmed millions of dollars from dispensary profits, according financial documents.

California-based Terra Tech reached a settlement with Heidi Loeb Hegerich, a co-owner of the Blum dispensary in Reno, the Reno Gazette-Journal reported Thursday…

Company pays $6M settlement to Nevada dispensary co-owner
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Loeb Hegerich filed a lawsuit in November accusing the company of taking advantage of her and funneling the skimmed funds to the company’s other ventures. The lawsuit also made claims of fraud, conspiracy and elder abuse.

Terra Tech did not respond to the newspaper’s request for comment Wednesday. It has previously denied the allegations.

In a statement last year, the company said the claims were meritless and its shareholders were the real victims because they might have “suffered losses from their investment in the company as a result of her spurious accusations.”

The company did not admit to any liability or responsibility in the settlement, it said in filings to the U.S. Securities and Exchange Commission.

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

Loeb Hegerich and Terra Tech executives opened the Reno dispensary in January 2017. Her license is to be transferred to Terra Tech as part of the settlement, according to the company’s filings.

Published July 7, 2019