Mitchell Hara, the former Chief Strategy Officer of Curaleaf Holdings (CSE: CURA), has filed a lawsuit against his former employer, alleging breach of contract. The lawsuit, which was filed in the Circuit Court of the Fifteenth Judicial Circuit in Palm Beach County, Florida, alleges that Curaleaf failed to fulfill its contractual obligations by terminating Hara without cause and withholding severance payments.
The dispute stems from an employment agreement entered into by Hara and Curaleaf on August 2, 2022. Under the terms of the agreement, Hara’s annual base salary was set at $450,000 initially and increased to $500,000 on January 1, 2023. Additionally, Hara was eligible for performance-based bonuses and equity awards as part of his compensation package.
One of the key provisions of the employment agreement was the severance package, which entitled Hara to certain benefits in the event of termination without cause. This package included salary severance, equity severance, and the cost of continuation of health coverage under COBRA for up to twelve months.
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However, the lawsuit alleges that Curaleaf terminated Hara on May 26, 2023, without valid cause, and has since refused to honor its contractual obligations. Despite the absence of any cause for termination as defined in the employment agreement, Curaleaf is said to have claimed false reasons as a pretext to avoid making the required severance payments.
The lawsuit seeks damages in excess of $1,000,000, exclusive of interest, costs, and attorneys’ fees. Hara is demanding the following from Curaleaf:
- The first lump sum payment of the Salary Severance, totaling $125,000, which was due on or before June 25, 2023.
- The second lump sum payment of the Salary Severance, amounting to $375,000, due on or before September 26, 2023.
- The cost of COBRA Severance, with the first three months of coverage due immediately on May 26, 2023, and the remaining nine months of coverage starting on or before September 26, 2023.
- The equivalent of a pro-rata number of shares and equity based on approximately ten months of employment, accelerated, vested, and available for exercise on May 26, 2023.
Hara’s lawsuit also accuses Curaleaf of failing to provide him with equity shares he is owed under the employment agreement.
This legal action seeks to hold Curaleaf accountable for its alleged breach of contract and ensure that Hara receives the compensation and benefits he believes he is rightfully owed. The case has been filed in Palm Beach County, Florida, and awaits further legal proceedings.
Information for this briefing was found via the sources mentioned. 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.
