$600 Million Lawsuit Claims Fraud By Medical Marijuana Company Tied to Acreage Holdings

A state Supreme Court judge in New York City will begin hearing arguments on whether plaintiffs David Feder and EPMMNY LLC have authority to sue for damages multi-state operator Acreage Holdings, Inc. (OTC:ACRDF) (CSE:ACRG) and other founders of NY Canna, a medical marijuana company, in a $600 million lawsuit, reported Syracuse.comThe company is accused of illegally excluding a partner from a medical marijuana license. The lawsuit claims EPMMNY played an instrumental role in obtaining the medical marijuana license under which Acreage currently operates, and that the defendants violated a contract for the ownership, management and control of the business license. The complaint seeks $200 million (the amount plaintiffs claim the license is worth) and $400 million in punitive damages. Meanwhile, attorneys representing defendants have filed motions to dismiss the case claiming their clients did not breach a contract. If the case moves forward, the plaintiffs are also seeking to block Canopy Growth from acquiring the NY Canna Inc. license as part of the potential acquisition of Acreage.