Two partners in one of Colorado's largest dispensary chains just took a major hit in an internal ownership battle.
Knobel and his company, Brightstar LLC, were sued by Ginsberg and Jordan the year after. Their lawsuit claimed that Knobel and Brightstar had violated a shotgun clause in their operating agreement by attempting to take control of the company and then sell Native Roots. According to Ginsberg and Jordan's filings, Knobel wanted to sell Native Roots to Privateer Holdings, a private equity firm that owns marijuana companies Leafly, Marley Natural and Tilray.
Knobel's attorney, Hugh Gottschalk, argued that an individual cannot be added to an arbitration hearing if that person never agreed to participate — and only Brightstar, not Knobel, agreed to arbitration. Denver District Court Judge J. Eric Elliff bought that argument. Elliff also claimed that the arbitrator, who wasn't named in the court decision, ruled on crucial issues in the case without accepting all of the evidence.
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