BURLINGTON — A prominent player in Vermont’s cannabis industry is suing former business partners for fraud and negligent misrepresentation.
Shayne Lynn of Burlington alleges Toronto-based SLANG Worldwide Inc. tried to find and acquire a cannabis business in Vermont that had a positive cash flow at a time when its company was “teetering on the edge of insolvency.”
“They used unlawful sharp practices to hoodwink” Lynn, majority owner of High Fidelity Inc., according to the lawsuit. The two companies later merged.
Lynn acquired two licenses when Vermont established a licensing program for growing, processing and selling medical cannabis in 2013. The licenses were held by Champlain Valley Dispensary and Southern Vermont Wellness.
Medical dispensaries were opened by HFI in Brattleboro, Burlington, South Burlington and Middlebury. They were supplied by the group’s production facilities in Milton and South Burlington. Later, the dispensary names were changed to CeresMED.
“Mr. Lynn, as President and CEO of HFI, operated the company profitably,” the suit states. “HFI was very successful in each of their geographic markets, establishing over time a strong brand awareness and positive cash flow. Mr. Lynn also managed HFI to create an integrated business model that included the grow operations, processing, manufacturing and retail locations, all of which