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Columbia Care Accused of Fraudulently Taking Lucrative License

The complaint accuses New York-based Columbia Care of tortious interference with contract, unjust enrichment, civil conspiracy, aiding and abetting fraud and aiding and abetting breach of fiduciary duty, among other offenses,

A Florida company focused on low-THC cannabis sued a New York-based cannabis company in New York County’s Supreme Court Commercial Division Friday, arguing that a medical marijuana license worth tens of millions of dollars was fraudulently misappropriated.

In the complaint, which accuses New York-based Columbia Care of tortious interference with contract, unjust enrichment, civil conspiracy, aiding and abetting fraud and aiding and abetting breach of fiduciary duty, among other offenses, Kasowitz Benson Torres partner Sarmad Khojasteh also accused Columbia Care of “a pattern of racketeering and tortious activity” in other states, including Arizona and Massachusetts.

Khojasteh argued that his client, Florida MCBD, spent years and hundreds of thousands of dollars seeking a license to operate a medical marijuana treatment center from the Florida Department of Health, starting in 2015.

To complete that process, Florida MCBD entered into a joint venture agreement with Sun Bulb, a Florida-based nursery, to help meet the state’s requirements for medical marijuana treatment center licenses, according to court filings. [Read More @ Law.com]

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