Scotts Miracle-Gro’s Hawthorne subsidiary is suing the executive chair of multistate operator TerrAscend and his investment company, alleging the MSO exec is trying to undermine Scotts’ purchase of a coveted cannabis license in New York in violation of federal antitrust law.
The lawsuit, filed in a federal court in Manhattan, presages what could be a protracted fight for privileged positions in what are still limited-license markets in heavily populated East Coast states.
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It’s also a test of the power of cannabis industry players: The suit pits a marijuana heavyweight with “exclusive” rights to leading brand Cookies – TerrAscend – against a much bigger publicly traded mainstream company – Scotts – that sits just outside the Fortune 500.
Last March, Toronto-based RIV Capital announced an agreement to purchase Etain Health, one of the 10 vertically integrated medical marijuana companies in New York, in a combined stock-and-cash deal
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