Founders of cannabis startup Kultiv8 Group LLC sued a group of seed investors Wednesday, claiming they exploited their control over a construction project to bleed the business dry, then hinged additional financing on terms that let them seize control of the venture.
The lawsuit targets several private equity investors who spent $6 million through K8 Investor Holdings LLC to take a 20% stake in the cannabis business. The founders allegedly chose to partner with them partly because of their expertise in the property sector.
But after the investors were given free rein to oversee construction of a facility, they tricked ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.