Canadian cannabis company Trulieve Cannabis is licensed from seed to sale. They make CBD oil and other cannabis medicines. The business distributes its cultivated and manufactured goods through Trulieve dispensaries.
Trulieve Cannabis’s quick expansion in Florida’s medical marijuana industry gave investors reason to believe their stock’s future was bright. That, however, becomes extremely challenging in light of the numerous pending litigation against the corporation.
Those in charge of Trulieve Cannabis Corp. have long been reckless with investor funds and con artists.
In 2017, Trulieve Cannabis Corp was sued by shareholders who claimed the company had lied about its gross profit, its markup on biological assets, and a real estate transaction with the CEO’s husband. In other words, the company is being sued by a group of investors for allegedly misleading them and taking their money between 2018 and 2019.
Trulieve Cannabis Corp (TCNNF) stock could drop on the news alone. Investors also claim that Trulieve lied to them by making extravagant claims regarding the quality of its products.
Kim Rivers and J.T. Burnette: The Truth Behind Trulieve Cannabis Leadership
Trulieve Cannabis Corp.’s executives are concerned, but they aren’t overly concerned about the class-action case. Why? Seeing as how they are currently being tried for public corruption as I pen this column.
Kim Rivers, the CEO, and J.T. Burnette, her husband, are under fire for their roles in a massive corruption scandal. J.T. Burnette owns and operates a hotel. When you consider that the FBI used many undercover agents to solve the case, you begin to grasp its complexity.
Scott Maddox, Paige Carter-Smith, and J.T. Burnette were all indicted as a result of the public corruption investigation that began in 2015.
J.T. Burnette was found to have bragged about his wife’s “purchasing power” during the trial. She would become a “powerful weapon” in his mouth, he would say. According to what Burnette told the spies, municipal commissioners like Gil Ziffer and Nancy Miller would phone Kim to double-check her stance on matters before voting.
That’s quite a bold assertion. And it demonstrates how crooked Trulieve Cannabis Corp’s management is. Burnette and Kim have been able to convince particular commissioners, according to Burnette. He also said he wrote money to fund several of their favorite initiatives.
Two jurors have reportedly withdrawn from the ongoing trial for unrelated reasons, sparking speculation that a mistrial will be declared. There will be a mistrial if any more jurors are dismissed.
Trulieve Cannabis Stock: An Overview
The ongoing corruption investigation and related litigation have harmed the share price of Trulieve Cannabis. The company’s debt level is quite large, and its non-cash earnings are excessive.
Their profit margins this year are down from last. Their profit margins were 20.4% last year but are only 11.4% presently. Trulieve Cannabis stock is more precarious now than it was a year ago because of the dilution of shareholders.
The Trulieve Cannabis Scam: Bribery, Fake Medicine, and the FBI
Investors have filed a class action lawsuit against the corporation, and the public corruption I mentioned earlier is a big reason why. They filed an action in part because of the recent Grizzly Report.
The investigation notes that there were several hidden conflicts of interest and that Trulieve’s first license approval may have been the consequence of corruption. The spouse of Trulieve’s CEO, J.T. Burnette, was the company’s principal construction partner. And he is currently involved in several controversies involving Florida’s public funds.
The investigation also uncovered that numerous Burnette-related businesses made massive profits off of selling real estate to Trulieve Cannabis Corp. This points to Kim Rivers exploiting investor money to line her husband’s pockets.
Multiple FBI probes involving Trulieve were noted in the report. They also found out that Trulieve was making subpar goods in hoop homes. Those areas are more vulnerable to natural disasters and pest invasions.
These are certainly some challenging realities. Kim Rivers and her business have sued Grizzly Reports for defamation. Recent court testimony, however, suggests they may be on shaky legal ground with their libel complaint. Burnette admitted to undercover FBI agents that his wife uses her wealth to influence city commissioners. It can’t get any worse than this, in my opinion.
Trulieve Cannabis Sued For Being Annoying
Trulieve Cannabis faces multiple lawsuits, including a class action lawsuit in which investors believe the company deceived them about the product and other matters.
Trulieve was the subject of a class action lawsuit launched by disgruntled customers in 2019.
The consumer’s damage claim was quite low at $1,500. However, Trulieve did not want this litigation to become public knowledge.
They tried to cover up the situation by tweeting that day about how individuals can sign up for alerts.
Even though it’s not a major lawsuit, Trulieve nevertheless felt compelled to suppress the story.
To hide any unfavorable press or customer feedback, this marijuana firm often resorts to unethical business methods. Their only goal is to keep the Trulieve stock outlook upbeat.
Trulieve isn’t the first corporation to try to hide the truth in this way. It’s standard practice for scam artists. Similar tactics are employed by the similarly unscrupulous Rising S Company. Be skeptical of any company that actively works to censor its customers.
Creating Fake PR to Influence Investors
Trulieve wastes a lot of money on public relations. The class action lawsuit the corporation is facing is confidential information. J.T. Burnette is being prosecuted for public corruption, and his attorneys don’t want the matter to receive any publicity.
As a result, the company invests substantially in public relations networks, where numerous pieces tout its many accomplishments. These pointless updates are made only to provide the impression that “everything is fine” to potential investors and stockholders.
Trust the Cannabis Industry to Take Advantage of Its Workers
You’d be making a big mistake if you thought positions at Trulieve were appealing. Numerous evaluations from former and current employees say that working at Trulieve Cannabis is a miserable experience. A few examples of feedback I found on their ads are shown below. Some examples of Trulieve’s bad job postings are as follows:
Conclusion
There is a lot more competition for Trulieve Cannabis now than there ever has been in Florida. There are now three or four MSOs operating in the state, all looking to make a profit off of the expanding consumer base. This cannabis company may not meet its Q2 revenue goals since they are unaccustomed to such intense competition.
New rivals are expanding rapidly and aggressively, opening many more stores than Trulieve. In July alone, for instance, sales of THC by Curaleaf doubled, and Liberty Health tripled.
When taken together, these pieces of data suggest that shares of Trulieve Cannabis won’t experience meteoric price increases. The firm is on shaky ground. It may collapse at any time.
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