The Law Office of David Liebrader is pleased to report $5.3 million in recent judgments and settlements against cannabis industry companies.
With the growth of the legal cannabis industry, unscrupulous operators and scam artists have been plying their trade, luring in unsuspecting investors with promises of outsized returns.
One case involves a $1.8 million judgment obtained in the Monterey County Superior Court against Zabala Farms of Salinas; a mid-size grow operation. The Plaintiff had invested in a Zabala affiliate that sold unregistered securities. The State of California issued a cease and desist order against the subsidiary, which was followed by an administrative action filed by the SEC. The investor was able to use the findings to obtain two judgments, one against the affiliate, and later, a judgment against Zabala Farms of Salinas in the Monterey Superior Court.