Wana Brands, a high-profile Colorado edibles maker, has been sued for allegedly stealing confidential business information from a marijuana company that was duped into believing it would be acquired.
LP Capital, a Colorado extraction company that makes MJ-concentrated vape cartridges, claims in a lawsuit it suffered more than $5 million in damages from lost revenue and business relationships after the proposed acquisition collapsed.
The company also alleged Wana – which sells its products in four states and has large-scale expansion plans – lured away some of its employees.
“LP Capital shared its vape strategies and plans with the good-faith belief that Wana would acquire LP Capital and run the vape product line for Wana,” according to the lawsuit.
Instead, Wana “tricked” LP Capital into providing proprietary information, “with no intentions of proceeding with the transaction.”
Wana denies the allegations, saying the suit had “no merit.”
The case is the latest in a growing number of legal skirmishes in the marijuana industry, reflecting the sector’s growth and the increasing number of mergers, partnerships and other business deals.
Lawsuit targets company, CEO
The lawsuit was filed last Friday in Boulder County District Court against Mountain High Products, which does business as Wana Brands, and Wana CEO Nancy Whiteman, who also is an owner of the edibles maker.
LP Capital, based in Henderson, produces cannabis oil extracts in the form of vape pen cartridges and syringes, as well as shatter and wax extracts, according to the lawsuit.
Wana Brands said in a statement Monday the suit is without merit.
“As the nascent cannabis industry continues to mature, brand leaders are beginning to experience many of the