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December 19, 2023

Cannabis firm with Leicester location sues dispensaries for $88K over lack of payment

An industrial building with a small parking lot and a sign in front. Image | Courtesy of Google Maps Cresco's Leicester facility, where the on-site dispensary operates under the Sunnyside brand.

Cresco Labs, a Chicago-based publicly traded cannabis company with 70 dispensaries and 13 production facilities spread across eight states, is suing two Massachusetts dispensaries over a lack of payment for goods produced from Cresco’s Leicester based production and cultivation facility.

The lawsuit, filed in Worcester County Superior Court on Monday, targets Terps – Attleboro and Terps – Wellfleet, two dispensaries that share ownership. The lawsuit said the two retail stores purchased $88,662 worth of product from Cresco’s Leicester facility from October 2022 and March 2023 but then failed to make payment to Cresco.

Both locations share the same directors and list Aspen Blue as an entity with direct or indirect authority over the business, according to Massachusetts Cannabis Control Commission documents. Aspen Blue is a Rhode Island-based entity managed by Patrick Casey, who is listed as a director for both Terps locations named in the lawsuit. 

In addition to its Leicester production facility and dispensary, which operates under the Sunnyside brand name, Cresco operates dispensaries in Worcester, Framingham, and Fall River, as well as a cultivation facility in Uxbridge.

Cresco’s Leicester location was originally opened by its previous owners under the name Cultivate and was the site of one of the first legal recreational cannabis transactions on the East Coast in November 2018. The location was sold to Cresco in September 2021

The Worcester and Leicester locations were supposed to be purchased by rapper Sean “Diddy” Combs in a deal announced in November 2022, but that agreement later fell through when a merger between Cresco and another large cannabis company, New York City-based Columbia Care, was canceled. 

The selling of certain assets to Combs was intended to help Cresco and Columbia Care’s combined post-merger entity stay compliant with state rules existing in many markets, including Massachusetts, limiting the amount of cannabis business licenses a single entity can own.

Talk of missed payments has become commonplace in the cannabis industry, as companies struggle to adapt to a rapidly changing economic environment caused by an oversaturation of businesses and declining cannabis prices.

Terps did not immediately respond to an email from WBJ requesting comment.

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