Marijuana dispensary groups settle lawsuit

June 25th, 2012 by admin Leave a reply »

The nonprofit group operating four of Maine’s medical marijuana dispensaries has settled a lawsuit filed by its former California backer. Wellness Connection of Maine, formerly called Northeast Patients Group, signed an agreement with California-based Berkeley Patients Group on Friday, according to the Portland Press Herald.

The terms of the settlement agreement have not been made public, but Wellness Connection attorney Stephen Langsdorf says all claims and counterclaims will now be withdrawn.

In July 2011, Berkeley Patients Group sued the Maine nonprofit for $632,000 in unpaid loans. The suit alleged that while working for Berkeley on its New England expansion effort, Wellness Connection Executive Director Becky DeKeuster used proprietary information to negotiate a deal between Northeast Patients Group and ex-NBA player Cuttino Mobley, signing a financing agreement before resigning from Berkeley and effectively cutting the California group out of Maine’s medical marijuana market. Wellness Connection filed a countersuit in August, seeking damages from capital Berkeley failed to provide as agreed.

In Augusta, Northeast struck a deal with Delaware-based company, The Wellness and Pain Management Connection, owned by Mobley and The Farmacy Institute for Wellness. Under the agreement, Mobley’s company would provide $1.6 million over eight years at 8.5% annual interest in exchange for consulting services.

Wellness Connection of Maine is the largest medical marijuana dispensary nonprofit in the state, with locations in Hallowell, Portland, Thomaston and Brewer.

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