Legal woes are piling on for Innovative Industrial Properties, as another shareholder has accused the cannabis-focused real estate investment trust of misleading investors about its due diligence on a key California-based marijuana company.
In a federal lawsuit filed last week in U.S. District Court in Maryland, where the publicly traded REIT is incorporated, Innovative Industrial Properties (IIP) investor Ross Weintraub accused Executive Chair Alan D. Gold, CEO Paul Smithers and other company officials of breaching their fiduciary duty by either failing to discover or declining to disclose key facts about one of the company’s main investments, Kings Garden.
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Southern California-based Kings Garden operates massive cultivation and extraction facilities in the Coachella Valley desert near Palm Springs.
IIP’s business model involves purchasing built-out real estate from marijuana businesses and then leasing the property back to the companies at a profit – an arrangement that provides cannabis operators
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