CBE Reports
A lawsuit filed Tuesday in Maryland federal court by LMS Wellness, Benefit LLC, owner of the Health for Life White Marsh dispensary in Baltimore County, accuses iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCPK: ITHUF) of stealing over four million dollars from LMS in a pattern of theft dating back to 2019 and continuing to this day. In addition to the New York-based Canadian MSO, three other defendants are named, all subsidiaries of iAnthus, leading the plaintiff to include a RICO count in the complaint. They are Greenmart of Maryland, LLC, dba Health for Life Baltimore; Budding Rose, Inc., dba Health for Life Bethesda; and Rosebud Organics, Inc.
The 22-page complaint outlines a convoluted but essentially simple plan to defraud LMS and its owner, William Huber, an attorney who also was in-house counsel for iAnthus during a portion of this saga, and to take millions of dollars out of LMS accounts and give them to Greenmart, Budding Rose, and Rosebud for purposes wholly unrelated to LMS. “The linchpin of iAnthus’s plot is a subsidiary in its corporate family, S8 Management, LLC (S8), which entered into a Management Services Agreement (MSA) with LMS that gives S8 near total control over LMS’s finances,” the complaint states.
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Maryland Retailer Sues iAnthus, Subsidiaries for Theft of Millions, Fraud, RICO
2637718_1-LMS-Compl.-AS-FILED
