Terra Tech, a California-based cannabis operator, agreed to pay $6.3 million to settle a lawsuit that alleged the company siphoned money from a Nevada dispensary for its other ventures.
The February settlement, reported Thursday by the Reno Gazette Journal, stemmed from a lawsuit filed last year by Heidi Loeb Hegerich, a businesswoman who co-owned the Blüm dispensary in Reno.
Hegerich also claimed Terra Tech didn’t properly audit the joint venture, attempted to remove her as dispensary manager and filed a false report to the Securities and Exchange Commission.
Terra Tech, which trades on the over-the-counter market under the ticker symbol TRTC, disclosed the settlement in its quarterly SEC filing but did not admit any liability.
According to the regulatory filing:
- Terra Tech agreed to purchase Hegerich’s 50% interest in MediFarm I, which owned the Blüm dispensary, and the building housing the dispensary.
- Terra Tech agreed to purchase Hegerich’s 15% interest in another entity called MediFarm II.