Cannabis Investor Must Arbitrate Equity Fight Over $1.35B IPO

Law360 (October 9, 2019, 6:48 PM EDT) -- An early investor in a cannabis company who accused its founders of an elaborate bait-and-switch to dilute his equity by nearly $150 million before taking the company public must make his case in arbitration, a New York state court has ruled.

The order on Friday removes the tangled case over ownership stakes in Columbia Care Inc. from civil litigation after nearly a year of testy proceedings involving multiple holding companies, investment vehicles and a failed bid to block an IPO valuing the Toronto-based medical marijuana company at $1.35 billion.

New York plastic surgeon Stafford Broumand claimed Columbia Care founders Michael Abbott...

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