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February 7, 2024

Dudley cannabis dispensary sued over alleged $56K in unpaid invoices

Photo | Rhett Jordan Greatest Hits Cannabis Co. in Dudley

As concerns over the economic status of the state’s cannabis industry continue to mount, another Central Massachusetts dispensary is involved in a lawsuit regarding alleged lack of payments for products purchased on the wholesale market.

Greatest Hits Cannabis Co., a business operating two dispensaries in Dudley and Taunton, was sued by Jolo Can LLC, a business operating a cannabis dispensary, cultivation and production facility in Chelsea under the name Harbor House Collective. The lawsuit was filed Thursday in Worcester County Superior Court against two corporations associated with Greatest Hits.

Harbor House’s lawsuit alleges the operators of Greatest Hits made two purchases of wholesale products totaling a value of $56,330 but failed to make on-time payments for the invoices associated with these purchases. 

The purchases included hundreds of vape cartridges, several pounds worth of cannabis flower and pre-rolled joints, and 200 packages of cannabis edibles, according to invoices filed as part of Harbor House’s lawsuit. 

The lawsuit claims the company eventually made a payment of $5,000 toward the debt and agreed to a payment plan to lead to Harbor House discharging the remaining amount owed, but then failed to make these payments as well. 

Harbor House says it made a final demand for payment of the balance owed by Greatest Hits on Jan. 19 but claims the company failed to respond.

Harbor House’s lawsuit claims Greatest Hits is guilty of a breach of contract and a breach of covenant of good faith and fair dealing. The lawsuit requests a ruling requiring Greatest Hits to pay the alleged remaining debt to Harbor House, plus 18% interest and any additional relief the court deems just.

Greatest Hits did not reply to a WBJ email requesting comment on this lawsuit sent to the email address of ownership listed on the company’s license application to the state’s Cannabis Control Commission. A phone call to the number listed on Greatest Hits’ application went unanswered.

Harbor House did not respond to an email requesting comment on the lawsuit.  

In addition to the lawsuit against the operators of Greatest Hits, Harbor House filed a lawsuit in Middlesex County Superior Court on Jan. 18 against G&E Printing, a Everett-based manufacturer of packaging materials. This lawsuit claims Harbor House made $77,000 worth of payments for packaging to G&E, but the company only provided $3,360 worth of product. 

Greatest Hits is not the only Central Massachusetts business involved in a lawsuit regarding lack of payments for wholesale purchases. Cresco Labs, a national cannabis company operating a dispensary and cultivation facility in Leicester, filed a lawsuit in December alleging a cannabis business operating dispensaries in Taunton and Attleborough owed Cresco more than $88,000 for wholesale goods it bought from the company. 

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