Cannabis company Terra Tech sued for alleged theft, deceptive finances

Women, minority execs show few gains in U.S. cannabis industry, according to the latest data from the MJBiz Diversity, Inclusion and Equity Report. Get your copy here.


A businesswoman in Reno, Nevada, is suing Terra Tech, accusing the California-based, vertically integrated marijuana company and various defendants connected to the firm of alleged theft, stock manipulation and filing false reports with government agencies, a local TV station reported.

According to the lawsuit filed by Heidi Loeb Hegerich in Washoe County District Court, Terra Tech “has a long history of inaccurate bookkeeping practices and filing deceptive financial reports.”

Here’s a rundown on the lawsuit, according to KRNV:

  • Hegerich accused Terra Tech of allegedly looting from the Blum dispensary, one of the joint ventures she co-owns with the company, to fund its other business interests.
  • She claimed the company didn’t properly audit its joint ventures and attempted to remove her as a manager of Blum. She said when Terra Tech was unsuccessful in doing so, the company made a false report in its 10-Q filing, claiming total control over management.
  • In response, Terra Tech issued a statement that said it “strongly denies these allegations.”

“We remind the public that the allegations in her complaint are just that – allegations by a business partner which have not been proven,” Terra Tech said in the statement to the TV station.

“We maintain that, after a full vetting of relevant facts, Terra Tech will be fully vindicated.”

The company, which trades on the U.S. over-the-counter markets as TRTC, announced in November it had signed a nonbinding letter of intent to merge with Toronto-based Golden Leaf Holdings.

The deal – which will enable Terra Tech to trade on the Canadian Securities Exchange when it closes – was valued at roughly $125 million.