Cannabis company Terra Tech sued for alleged theft, deceptive finances

Just Released! Get realistic market forecasts, state-by-state insights and benchmarks with the new 2024 MJBiz Factbook member program, now with quarterly updates. Make informed decisions.

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.