Oregon Cannabis Litigation: Cura Hit with $10 Million Class Action
It has been a tough stretch for Portland-based Cura Partners, Inc. (“Cura”) and its parent company, Massachusetts-based Curaleaf Holdings, Inc. (“Curaleaf.”)
Cura produces the popular Select brand of THC vaping products and was declared Oregon’s first “cannabis unicorn.” In May of 2019, Cura announced its sale to Curaleaf for more than $1 billion in an all-stock transaction. Around the same time, Curaleaf announced it would pay some $875 million, mostly in stock, to acquire a Chicago based cannabis company, Grassroots. These deals made Curaleaf one the world’s largest marijuana companies. Sounds good right?
It didn’t last long. One year ago today, Curaleaf was hit with an FDA warning letter for “illegally selling” CBD products and making health claims about those products. That was followed by a class action securities lawsuit alleging that Curaleaf made knowingly false statements to the investing public. Shortly after, Curaleaf was fined $250,000 by the State of Massachusetts for failing to disclose change of ownership to state regulators. You can find our comprehensive analysis on that brutal stretch here.
Things don’t seem to have improved much for the Curaleaf family of companies in 2020. In January, Cura paid a record $110,000 fine for mislabeling products