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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 Innovative Industrial Properties (IIPR), a cannabis real estate investment trust (REIT). The lawsuit accused IIP of having knowledge about fraudulent activities carried out by its tenant, Kings Garden.

The investors argued that IIP should have discovered the fraud through proper due diligence.

However, Judge Evelyn Padin ruled in favor of IIP, stating that the company had adequately protected itself by including risk warnings in its securities filings. The judge deemed the allegations made after those warnings insufficient.

Judge Padin also dismissed accusations of positive statements about Kings Garden, accounting violations, and exaggerated valuations, deeming them either subjective or immaterial. The investors have 30 days to file an amended complaint, according to Debra Borchardt for GMR.

Slang Worldwide Faces Allegations in Vermont Cannabis Deal

Meanwhile, executives at SLANG Worldwide (SLGWF), a Toronto-based global cannabis consumer packaged goods (CPG) company, are facing allegations of concealing their financial issues during negotiations to acquire a cannabis operation in Vermont. The allegations come from a lawsuit filed by Shayne Lynn, the former owner of High Fidelity.

The lawsuit 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 worth $17.25 million, just before Vermont’s adult-use cannabis market launched. Lynn claims that SLANG failed to disclose its financial troubles and that the acquisition was primarily intended to secure a loan, as reported by MJBizDaily.

The Benzinga Cannabis Capital Conference

The Benzinga Cannabis Capital Conference, a premier event for cannabis investment and branding, will take place in Chicago on September 27-28. Secure your spot at the conference now and be part of the center of cannabis industry deals and opportunities.

Photo: Anne-Onyme via Pixabay.

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