Indoor Agriculture Company Sues Lender Fairchild US for Fraud

Local Bounti Corp., an indoor agriculture company, has sued lender Fairchild US LLC for fraud, alleging it used another company as a shell to shield it from liability over loans the lender promised but couldn’t pay.

Fairchild US deliberately misrepresented that it could lend Local Bounti about $230 million for greenhouses in Texas, Ohio, and Washington, the complaint filed Wednesday in the Delaware Chancery Court said. That was to convince Local Bounti to pay millions in deposits, the complaint said.

Fairchild US uses Fairchild Opportunity Fund LLC, another named defendant in the case, as an alter ego ...