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Beverly Hills cannabis investment firm sues for a piece of Cura’s $390M acquisition haul

Should the suit continue to trial, a court would hear Cura’s arguments in June 2021.

A Beverly Hills, California cannabis investment firm is suing Cura Partners Inc., claiming it connected the Portland cannabis vape oils company with investors who eventually acquired Cura in a deal valued at $390 million upon closing early this year.

Arcadian Capital LLC is seeking $11.7 million in the lawsuit — 3 percent of the deal’s value, which the firm says was promised to it in a 2018 consulting agreement.

Cura, maker of the Select brand of vape oils, now part of Curaleaf Holdings Inc., denied the legitimacy of the agreement in a filing in U.S. District Court in California.

Cura called it a “sham so-called consulting agreement” and said the plaintiffs misrepresented themselves and provided no services — and had no legal right to provide them.

But in a court-filed response to the suit, Cura did acknowledge that “on or about February 23, 2018,” Arcadian’s Matthew Nordgren and Jason Sugarman introduced “individuals associated with Cura LLC” to a man who would become a pivotal player in Cura’s future.

It happened, according to the Cura filing, one evening at the Four Seasons Hotel in Beverly Hills, where all the parties found themselves.

Nordgren and Sugarman engaged the Cura individuals in “casual conversation,” Cura said, and then, “without any precondition or prior agreement(s) whatsoever, informally introduced those individuals to a person named Boris Jordan who also just happened to be then eating dinner at the hotel.”

Jordan was a major investor in PalliaTech, an East Coast medical marijuana company that was morphing into a nationwide vertically integrated operation and that by August 2018 would rename itself Curaleaf. Jordan is Curaleaf’s executive chairman.

To Read The Rest Of This Article By Pete Danko on Los Angeles Business Journal

Published: July 24, 2020

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