A California funding firm claims it is owed $11.7 million in consulting charges for introducing the predecessor of Massachusetts marijuana multistate operator Curaleaf to an Oregon vape oil firm.
Beverly Hills, California-based Arcadian Capital argues in a federal courtroom lawsuit that it’s owed 3% of Curaleaf’s recent $390 million acquisition of Portland-based Cura Partners, which is understood for its Select vaping merchandise.
The lawsuit was filed earlier this yr and reported Thursday by the Portland Business Journal. Arcadian’s lawsuit initially was filed in Superior Court in Los Angeles County, then moved to U.S. District Court in central California.
Cura Partners denies the validity of the declare, calling the consulting contract a sham as a result of Arcadian supplied no companies.
Arcadian bases its declare on a 2018 consulting settlement with Cura Partners that it says was not canceled.
According to the lawsuit, Arcadian made an introduction that led to an preliminary $13 million funding in Cura Partners by PalliaTech, which later modified its identify to Curaleaf.
Arcadian stated it obtained a consulting charge of $390,000 in the spring of 2018 for that introduction however needs to be paid consulting charges for the Curaleaf-Cura Partners merger as nicely.