Synthetic cannabinoid partnership devolves into $881 million lawsuit

(A version of this story first appeared at Marijuana Business Daily.)

A cannabis research and development deal hailed just last March as a $300 million partnership has morphed into a nearly $1 billion court battle.

New York-based Lavvan filed an $881 million suit against its partner, California-headquartered Amyris, alleging misappropriation of trade secrets and patent infringement.

According to a news release, Lavvan specifically accused the company of stealing secrets to synthetic cannabinoids such as CBG.

The two companies entered into a research, collaboration and license agreement in March 2019, but Lavvan contends in its lawsuit that Amyris broke the terms of the deal and said it had no other recourse but to file suit.

“Rather than fulfill its obligations to Lavvan under the agreement, Amyris has decided to transform from partner to direct competitor, in flagrant violation of Lavvan’s rights,” CEO Neil Closner said in the release.

The lawsuit was filed in U.S. District Court in the Southern District of New York.

Amyris trades on the Nasdaq under the ticker symbol AMRS. Lavvan is a privately held company.

A spokesperson for Amyris did not immediately respond to a request for comment.