Verano’s Legal Battle: The Latest in the Lawsuit Against Goodness Growth

Verano Holdings Corp., headquartered in Chicago, is embroiled in a legal dispute with fellow cannabis multistate operator Goodness Growth. The conflict stems from an aborted acquisition deal that has now escalated into a significant legal showdown.

Goodness Growth Seeks Summary Trial

Goodness Growth recently filed an application in Vancouver, British Columbia, seeking a summary trial and claiming damages totaling nearly $861 million after Verano terminated an all-stock acquisition deal. However, Verano has moved to dismiss this application, arguing that a summary trial is inadequate for the complexity of the issues involved.

Verano’s Defense

In response to Goodness Growth’s application, Verano contends that it requires proper procedural safeguards, including full discovery, expert testimony, and cross-examination of witnesses. Verano criticized Goodness Growth’s move as an attempt to influence public opinion rather than seek a fair resolution.

Legal Proceedings

The Supreme Court of British Columbia has scheduled hearings for Verano’s application on August 27-28, with a potential full trial slated for 2026. This legal maneuvering underscores the high stakes and contentious nature of the dispute between the two entities.

Origins of the Dispute

The legal saga began when Verano terminated the acquisition agreement with Goodness Growth, alleging breaches of contract by the latter. Goodness Growth, in turn, claims Verano pressured them into accepting a lower purchase price than initially agreed upon, leading to the deal’s collapse.

Damages Claim

Goodness Growth’s claim for $860.9 million in damages represents what they assert is the lost value from the failed acquisition. Verano has challenged the validity of this figure, arguing it is speculative and unsupported by evidence.

Expert Affidavit Controversy

Verano has also challenged the credibility of an equity research analyst’s affidavit used by Goodness Growth to support its damages claim, arguing the analyst lacks qualifications to assess business valuations.

As the legal battle intensifies, both Verano and Goodness Growth await a judicial decision that will determine the future direction of their dispute. With significant financial implications and reputational stakes, the outcome of this legal conflict could have far-reaching consequences for both companies and the broader cannabis industry.

This ongoing legal saga underscores the complexities and challenges inherent in corporate acquisitions within the cannabis sector, highlighting the importance of clear contractual agreements and rigorous legal oversight in such transactions.