More bad news Pot supply dispute leads to $500M lawsuit against Canopy Growth, Canopy Rivers and TerrAscend
Some of Canada's biggest cannabis companies are facing a $500 million lawsuit stemming from a supply dispute between a group of shareholders backing a Leamington, Ont. greenhouse. The lawsuit alleges that Canopy Growth, the firm's venture arm Canopy Rivers, as well as TerrAscend. and its Canadian subsidiary committed a series of actions including "bad faith, fraud and civil conspiracy" after refusing to accept cannabis grown at the PharmHouse facility, claiming the rates it once agreed to pay were no longer "commercially reasonable.” The facility, which the plaintiffs claim cost $114 million to build, was initially licensed in July 2019 and completed in February 2020. Canopy Rivers said the lawsuit is "completely without merit," a statement echoed by a TerrAscend spokesperson, while a Canopy Growth spokesperson declined to comment.