Cresco Labs Ends Lawsuit Against Co-Founder Joe Caltabiano – Cannabis Dispensary

Vertically integrated, multistate operator (MSO) Cresco Labs and its co-founder Joe Caltabiano have ended a multifaceted dispute in a Canadian court after Cresco alleged in a lawsuit that Caltabiano engaged in inappropriate behavior and created a “toxic work environment” while working at Cresco and breached his contract with the company, which he left last year.

On Jan. 29, Cresco filed a civil suit in British Columbia’s Supreme Court against Caltabiano, who was Cresco’s president and a member of its board of directors, and against Ken Amann and Choice Consolidation Corp. (Though it operates in the U.S., Cresco has an office in Vancouver, B.C., and is publicly traded on the Canadian Securities Exchange.)

By Feb. 4, the case was discontinued.

“The claims outlined in the lawsuit have been resolved through a mutual settlement agreement and Cresco has successfully mitigated the regulatory issues referred to in the complaint,” Cresco spokesperson Jason Erkes told Cannabis Business Times and Cannabis Dispensary in a Feb. 11 email. “The lawsuit has been discontinued in the Supreme Court of British Columbia.”

“This lawsuit was quickly dismissed on Feb. 4,” Shawna McGregor, a publicist who represents Caltabiano, told CBT and CD in a Feb. 12 email. “Had it proceeded, Mr. Caltabiano and Choice Consolidation Corp would have denied the allegations as untrue. Like all legitimate organizations, Choice Consolidation Corp. has every right to exist and operate within the U.S. cannabis marketplace.” 

In its suit, Cresco claimed that Caltabiano bullied and intimidated female employees at the company and “sought to embarrass his female employees at every turn.”

The company also alleged that Caltabiano and Amann, Cresco’s former chief financial officer and a former senior employee, “misused confidential information belonging to Cresco, including information about existing Cresco investors, and information about Cresco’s business plans and M&A targets” to benefit a separate, competing venture,

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