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Grassroots Cannabis Sued by Shareholder Eyeing Curaleaf Merger

July 16, 2020, 4:57 PM

Cannabis company Grassroots was sued for records in Delaware by a shareholder claiming its leaders agreed to lower the price of its planned $700 million sale to Curaleaf Inc.—which would create one of the country’s largest cannabis companies—after they were promised millions in bonuses and other perks.

“While the amended merger agreement eliminates cash payments for Grassroots’ outside stockholders and locks up the stock compensation they will receive for a period of over three years, the Grassroots insiders tasked with renegotiating the deal made sure they will get paid,” the Chancery Court complaint says.

The lawsuit concerns last month’s downward ...