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Corporate Governance

Bloom Farms Series E Financing Blocked Pending Investor Lawsuit

July 8, 2020, 6:30 PM

Cannabis company Bloom Farms can’t close on a new financing round pending litigation of claims that its board cooked its books to dupe an investor, but it can continue to market the buy-in as long as it discloses the lawsuit, a Delaware judge ruled.

Vice Chancellor Morgan T. Zurn issued the temporary restraining order Tuesday, modifying a June 26 preliminary bench ruling in favor of plaintiff Jeff A. Menashe, who has also accused the company of concealing the role its former chief financial officer played in a $1 billion solar energy Ponzi scheme.

Menashe got a seat on the board...

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