Friday, September 5, 2025

Canopy Growth, Hemp Producer Head to Court Over 1,115 Acres of Lost Production

Canopy Growth Corp (TSX: WEED) (NYSE: CGC) and its US based hemp partner Go Farm Hemp are headed to the courts. The two are suing each other as a result of a dismal 2019 crop that spans several states and multiple contracts, including the states of New York, Kentucky, Colorado and North Carolina.

The legal battle began on Tuesday, when Go Farm Hemp filed a $1.9 million federal suit alleging that Canopy failed to make certain payments that it had previously agreed to. Later that same day Canopy Growth filed against Go Farm Hemp, alleging fraud on the part of Go Farm Hemp, in a supposed plot to cheat the cannabis grower out of money.

Canopy Growth further alleged that only 275 acres of the 1,115 under contract were viable for the purpose of growing hemp, and that the $12 million it had advanced to the hemp grower was treated like a “free bank account,” with allegations of funneling money to personal bank accounts to make purchases that include a home in Panama. The suit also states that not a single acre of usable hemp was actually produced for Canopy Growth, a major hit to its forecasts for its US-based hemp operations.

The issuer then went a step further, stating that the hemp grower lacked the skills, knowledge, and experience to farm such a large area of hemp – something that should have been thoroughly vetted by the cannabis operator prior to entering into multiple contracts across multiple states with Go Farm Hemp.

Both lawsuits were filed within the state of New York in the Western District, with no dates yet announced for resolution of the contradictory claims between the two firms.

The full lawsuit can be found via Law360 here.

Canopy Growth closed today’s session at $20.42 on the New York Stock Exchange.


Information for this briefing was found via Sedar, Hemp Industry Daily, and Law360. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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