Hemptown USA is a multi-state hemp operation that has been involved in a number of lawsuits in recent years. Two of the most notable lawsuits are:
- $44 Million Lawsuit for Worthless Hemp Seeds
In 2019, Hemptown USA was sued by a Kentucky-based CBD producer for $44 million after the company allegedly sold it nearly worthless hemp seeds. The lawsuit alleged that the seeds were not as advertised and that they resulted in a failed crop. The lawsuit was eventually settled for an undisclosed amount.
- $7 Million Lawsuit for Breach of Contract
In 2020, Hemptown USA was sued by a Central Point, Oregon couple for $7 million for breach of contract. The couple alleged that they had provided Hemptown USA with 26 acres of land to grow hemp on, but that the company had failed to pay them their share of the revenue. The lawsuit is still ongoing.
Conclusion
The Hemptown USA lawsuits are a reminder of the risks associated with the hemp industry. The industry is still relatively new and there is a lack of regulation. This can make it difficult to find reputable suppliers and to enforce contracts.
FAQs
Q: Why is Hemptown USA being sued?
A: Hemptown USA is being sued for two main reasons: (1) allegedly selling worthless hemp seeds and (2) allegedly breaching a contract with landowners.
Q: What is the outcome of the lawsuit for worthless hemp seeds?
A: The lawsuit for worthless hemp seeds was settled for an undisclosed amount.
Q: What is the status of the lawsuit for breach of contract?
A: The lawsuit for breach of contract is still ongoing.
Q: What are the risks associated with the hemp industry?
A: The risks associated with the hemp industry include a lack of regulation, difficulty finding reputable suppliers, and difficulty enforcing contracts.
Q: What should I do if I am considering investing in the hemp industry?
A: If you are considering investing in the hemp industry, it is important to do your research and to work with reputable suppliers. You should also have a contract in place that clearly outlines the terms of your agreement.
Q: What is the future of the hemp industry?
A: The hemp industry is growing rapidly and is expected to continue to grow in the coming years. However, the industry is still relatively new and there is a lack of regulation. This could pose some challenges for investors.
References
- Oregon company sued $44 million allegedly selling worthless hemp seeds: https://www.statesmanjournal.com/story/news/2019/09/28/oregon-company-sued-44-million-allegedly-selling-worthless-hemp-seeds/3805696002/
- Oregon hemp grower Hemptown USA targeted in $7M lawsuit: https://www.bizjournals.com/portland/news/2020/01/28/oregon-hemp-leader-targeted-in-7m-lawsuit.html
- Hemptown USA Closes CAD $23M Capital Raise: https://www.globenewswire.com/en/news-release/2019/05/14/1823642/0/en/Hemptown-USA-Closes-CAD-23M-Capital-Raise.html
1 COMMENTS
LEAVE A RESPONSE
I invested in Hemptown USA , $5,000 in the IPO , They’ve had my money for almost 3 years , I’ve decided I want out and get my money back . But there is no way to call this company . What can I do ?