Business Law News

California Cannabis Company Accused of Breach of Contract, Fraud

The owners of a high-profile marijuana shop in Southern California – Santa Ana’s 420 Central – are accused in a lawsuit of defrauding investors.

The suit, filed in Orange County Superior Court of California, contains a host of salacious allegations, including one that founder and CEO Robert Taft ran an unlicensed marijuana grow operation in Sonoma County.

The suit, filed by two investment companies against a conglomeration of business entities known collectively as the 420 Companies and two of its executives, Jorge Burtin and Jeff Holcomb, alleges, among other things:

  • The lawsuit paints a picture of managerial incompetence at 420 Companies, alleging that Taft is a “mercurial and volatile” executive prone to “boasting about his grand ideas to employees, and coaxing employees to smoke marijuana with him outside during working hours.”Fraud.
  • Breach of contract.
  • Breach of fiduciary duty.

Under Taft’s watch, the suit alleges, 420 Companies has gone into a “death spiral,” hemorrhaging revenues and losing clients.

To Read The Rest Of This Article By John Schroyer on Marijuana Business Daily

Published: August 30, 2019

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