Cannabis Court Update: REIT IIP Lawsuit Dismissed, Slang WW Faces Fraud Allegations In Acquisition Deal

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Cannabis REIT IIP Lawsuit Dismissed By New Jersey Judge

A New Jersey Judge has dismissed an investor lawsuit against cannabis REIT Innovative Industrial Properties (IIP) IIPR that accused IIP of knowing about fraudulent activities by its tenant Kings Garden.

The investors claimed that IIP should have uncovered the fraud through due diligence.

However, Judge Evelyn Padin ruled in favor of IIP, stating that the company had covered itself with risk warnings in its securities filings, making the allegations after those warnings insufficient.

The judge also dismissed accusations of positive statements about Kings Garden, accounting violations and overstated valuations, stating they were subjective or not material. The investors have 30 days to file an amended complaint, reported Debra Borchardt for GMR.

Marijuana Company Slang Worldwide Face Allegations In Vermont Cannabis Deal

Meanwhile, executives at Toronto-based SLANG Worldwide SLGWF, a global cannabis consumer packaged goods (CPG) company, with a diversified portfolio of brands, are facing allegations of concealing their financial difficulties during negotiations to acquire a Vermont-based cannabis operation, according to a lawsuit filed by Shayne Lynn, former owner of High Fidelity.

The suit accuses Slang's co-founder Peter Miller, former CEO Christopher Driessen, and the company itself of fraud and negligent misrepresentation. Slang purchased High Fidelity in a stock-and-cash merger valued at $17.25 million just before Vermont's adult-use cannabis market launch, with Lynn claiming that Slang failed to disclose its financial troubles and that the acquisition was intended to secure a loan, reported MJBizDaily.

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Photo: Anne-Onyme via Pixabay

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Posted In: CannabisNewsPenny StocksREITLegalMarketsReal EstateCannabis REITChristopher DriessenIIPKings GardenSlang Worldwide Inc.Vermont Cannabis
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