Kelowna cannabis execs sue company for $1.4M

The former president of a Kelowna cannabis company, along with its former corporate secretary are suing their former employer, arguing the company owes them $1.4 million in wages and shares after both women were fired on the same day.

According to a notice of claim filed at the Kelowna courthouse Feb. 28, former company president Linda Sampson and former corporate secretary Anne Wolfe were subjected to a "humiliating spectacle" when they were both escorted from the offices of Fiore Cannabis by eight security guards in March 2019.

Fiore Cannabis has its head office in Kelowna and is in the business of cultivating, producing, and retailing cannabis for the U.S. market.

Following her firing, Sampson alleges company director Richard Huhn told several colleagues and investors that she had stolen $1 million and had resigned. Sampson also alleges her email account was then used with a forged copy of her signature in an email to Health Canada and in a sworn affidavit.

The 26-page Notice of Claim goes through a lengthy explanation of the share options both women were supposed to get and how after they were both fired, they were then re-hired as contractors for between 30 to 50 per cent less wages.

However, the notice of claim states neither were paid for their contract work saying the company had no "genuine intention" to ever pay them.

"On Mar. 26, 2019, the company departed from ordinary, legal standards, or of reasonable behaviour by orchestrating a premeditated, excessive, intimidating and humiliating termination of the plaintiffs without ever proving just cause," the notice of claims reads. "The company used the ruse of ambushing the plaintiffs under the threat of serious misconduct to deny the plaintiffs their termination pay entitlements."

The court documents say the company brought in more than $2 million between March and October 2020.

The notice of claim states the company has a history of non-payment and lists three other court actions related to the default of payments for more than $3 million.

While Fiore Cannabis made serious allegations of misconduct about the two women, the company rehired them on contract to deal with $2,000,000 worth of cannabis at its Nevada operation during an "unprecedented crisis" that demanded their experience in 2020, according to the claim.

"The plaintiffs, who shared concerns that the crisis could have a significant impact on the company and its shareholders, were in agreement and deployed to Nevada that evening," reads the court documents.

"After three years, and in hindsight, it is clearly evident that the company wished to continue engagements with the plaintiffs while avoiding the cost with respect to the termination terms of their employment contracts," the notice of claim says.

While both women tried to negotiate a settlement with the company, it soured and they launched legal action.

The court documents say the company has gone through multiple name changes since it was launched in 2007. The company was previously called Capital Auction Markets, Marapharm Venture, LIHT Cannabis, Citation Growth, before becoming Fiore Cannabis in October 2020.

None of the allegations have been proven in court. Fiore Cannabis has yet to file a response to the lawsuit.

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