The cannabis industry is no stranger to fraud accusations, with the past couple of weeks seeing some of the largest companies in the sector fall prey to short sellers and allegations of corruption.
Another major company, Terra Tech Corp (OTCQX: TRTC), is finding itself in a similar position as it responded to allegations in a lawsuit filed against accusing the company of theft, stock manipulation, and filing false reports with agencies.
The lawsuit, filed by businesswoman Heidi Loeb Hegerich of Reno, Nevada, argued that Terra Tech had a “long history of inaccurate bookkeeping practices and filing deceptive financial reports.” According to a local television state KRNV, Hegerich accused Terra Tech of looting recently acquired dispensaries to fund other business interests, as well as the company didn’t probably audit its joint ventures, including making a false report in its 10-Q filing.
In response to the accusations, Terra Tech issued a formal press release today where they defended themselves. The company argues that Mrs. Hegerich’s lawsuit was an attempt at manipulating Terra Tech into paying money that she doesn’t deserve, and that the real victims in this affair are the many shareholders who have suffered losses in share prices over these accusations.
Terra Tech went on to state that the lawsuit failed to mention that they had made multiple offers to purchase Mrs. Hegerich’s share of the business at over eight times return on her investment within a two-year time period.
“Far from the image portrayed in recent interviews, Heidi Loeb Hegerich is in fact a wealthy, sophisticated investor with a history of disputes with business partners. Ms. Hegerich was married to David Loeb, one of the founders of Countrywide Mortgage. She has described herself as a business executive, real estate developer and self-described ‘mistress to the rich and famous,’ said Terra Tech CEO Derek Peterson in light of the lawsuit. “We reaffirm our commitment to our shareholders to correct any misleading and inaccurate reports and remain committed to providing accurate information to our investors.”
In response to these developments, stock shares have plunged drastically, seeing a 23 percent decline over the course of a single trading session. Only time will tell how Terra Tech will fair in this legal case.
Terra Tech Company Profile
Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Blüm’s retail and medical cannabis facilities provide the highest quality medical cannabis to patients who are looking for alternative treatments for their chronic medical conditions as well as premium cannabis to the adult-use market in Nevada and California.
Blüm offers a broad selection of cannabis products including; flowers, concentrates and edibles through its Oakland, CA and multiple Nevada locations. IVXX, Inc. is a wholly-owned subsidiary of Terra Tech that produces cannabis-extracted products for regulated medical cannabis dispensaries throughout California and medical and adult-use dispensaries in Nevada.
The Company’s wholly-owned subsidiary, Edible Garden, cultivates a premier brand of local and sustainably grown hydroponic produce, sold through major grocery stores such as ShopRite, Walmart, Ahold, Aldi, Meijer, Kroger, Stop & Shop and others nationwide. Terra Tech’s MediFarm LLC subsidiaries are focused on medical and adult-use cannabis cultivation and permitting businesses throughout Nevada. – Terra Tech