Nevada Marijuana Firm faces 6 separate Lawsuits
Posted by Sagar Satapathy on September 07, 2018.
According to reports, six separate lawsuits have been filed against CWNevada including fraud, failure to pay lenders on time and, in one case, misappropriation of intellectual property.
CWNevada, which calls itself “the premier cannabis distributor in Nevada’’, owns at least two cultivation facilities, a production facility and three dispensaries under the Canopi brand.
The court documents revealed that the company is struggling to pay back millions of dollars it raised from lenders over the past few years for cultivation, production and distribution of marijuana products,
The lawsuits were filed by Highland Partners NV LLC, MI-CW Holdings LLC, MI-CW Holdings NV Fund 2 LLC and Green Pastures Group LLC and CIMA Group LLC.
According to court records, all the lawsuits with the exception of the one filed by the CIMA Group have been condensed into one case.
The MI-CW Holdings NV Fund 2 alleged that CWNevada had taken a lone of $3.25 million for equipment; however the company has not paid it back.
Likewise, the MI-CW Holdings NV Fund 2 accused CWNevada of “fraudulent conduct” and has asked the court to require CWNevada to provide it with “true and correct financial statements.”
The Green Pastures Group and MI-CW Holdings filed lawsuits seeking access to the CWNevada’s financial statements and alleged it did not repay loans, the amount of which it did not disclose in its lawsuit.
The MI-CW Holdings’s lawsuit alleged that it had given CWNevada a three-year loan of $161,802.61 in June 2017. However, CWNevada stopped making its monthly payment of $5,914.60 on the loan in January this year.
Highland Partners’ lawsuit alleged the company has not paid rent or operating expenses. “To date, CWNevada has not paid any Base Rent to Highland whatsoever, despite being in possession of the Premises for over twelve (12) months,” according to the Highland lawsuit filed July 6, 2018.
The lawsuit of Highland also accused the company of fraud and alleged Padgett removed a mutually approved accountant after a $1.3 million discrepancy was discovered.
The company asked the court for access to CWNevada’s financial records and to appoint a receiver.
According to the Nevada Department of Taxation, CWNevada owns three dispensaries in Clark County under the Canopi brand, CWNevada owns three dispensaries in Clark County under the Canopi brand which are located at 1324 S. 3rd St., Las Vegas, 2113 N. Las Vegas Blvd., North Las Vegas and 6540 Blue Diamond Rd., Las Vegas.comments powered by Disqus