Marijuana is on display at 420 Sahara Wellness in Las Vegas on Aug. 1, 2018. Nevada regulators and industry insiders say the state‘s first year of adult-use marijuana sales has exceeded their expectations. (AP Photo/John Locher)
Michael Frey and his brother Robert are suing their partner in the Nevada cannabis business for $125 million.
It is the latest in a series of lawsuits by investors in the booming local marijuana industry that is creating multi-millionaires in a flash.
The Frey brothers own a 50,000-acre cannabis cultivation and production facility in Nevada and own a joint venture called Naturex that owns the Zen Leaf dispensary in Las Vegas.
In a lawsuit filed Tuesday in Clark County District Court, the brothers are accusing Illinois-based Verano Holdings of secretly submitting an application for new Nevada licenses without them.
Verano is one of the largest marijuana companies in the U.S., owning 10 operating facilities and more than 45 dispensary licenses in nine states.
The company recently raised $120 million in investment for expansion and this month hired PepsiCo executive Ron Goodson as president and chief operating officer.
Verano CEO George Archos said the company is aware of the complaint but has not had an opportunity to review the claims.
“Based on what we know of the allegations, however, we do not believe the complaint has merit. We intend to defend aggressively against these claims,” Archos said in a statement to the Review-Journal.
Verano’s local entity Lone Mountain Partners was awarded 11 licenses by the Department of Taxation late last year.
The company was the biggest winner of that round, taking home one out of every six awarded by the department.
Those licenses combined are worth about $150 million, the brothers claim. They are seeking half of that sum as well as $50