Marijuana multistate operators Vireo Growth Inc. and Verano Holdings Corp. have settled a potentially costly lawsuit that stemmed from a merger abandoned after cannabis stock prices crashed, the companies announced Wednesday.
As part of the settlement, Minnesota-based Vireo Growth will receive $1 million in cash and $10 million worth of “non-operational” real estate in Pennsylvania, according to George Archos, the founder and CEO of Chicago-based Verano.
Vireo, formerly known as Goodness Growth Holdings until a July 1, 2024, name change, had initially sought $860.9 million in damages from Verano in a 2022 lawsuit filed in the Supreme Court of British Columbia.
That claim followed the collapse of an all-stock deal valued at $413 million that Verano terminated that year.
In response, Verano claimed that it was owed $17.8 million in termination fees and transaction expenses.
Both companies are incorporated in British Columbia and listed on Canadian exchanges.
The settlement was announced the same day as Verano’s quarterly earnings.
The company reported losing $44 million in the third quarter of 2025.
Vireo Health to receive cash, real estate after $413 million deal failed
In addition to the cash, Vireo will receive a Pennsylvania building that Verano had listed for sale.
“Although we stand firmly behind our claims against Vireo and our defenses to Vireo’s allegations, after careful consideration of the costs and burdens of the prolonged litigation, we determined that resolving this matter was the most prudent business decision for Verano,” Archos said during Wednesday’s earnings call, according to a transcript.
Verano initially signed an agreement to acquire Goodness Growth in February 2022, when cannabis stock prices were still close to an all-time peak.
The deal promised to position Verano to enter potentially lucrative markets such as New York and Maryland.
‘Buyer’s remorse’ alleged after cannabis MSO stock prices fell
However, Verano had “buyer’s remorse” after cannabis stock prices crashed following the deal’s announcement, then-Vireo CEO Josh Rosen told MJBizDaily in 2024.
In a 2022 claim, Vireo alleged it was “perpetually at the edge of or in default” of a loan agreement with Chicago Atlantic, a major lender to cannabis companies, as a result of the deal’s collapse.
However, in an October 2022 counterclaim, Verano alleged that Vireo breached an “arrangement agreement” by excluding vital information in company documents.
Vireo is one of two companies that have a head start in Minnesota, where non-tribal adult-use cannabis sales began last month.
As for Verano, the firm is one of several cannabis-sector borrowers with significant debt coming due in 2026.
The abandoned deal also led to federal insider trading charges filed against a former Verano executive vice president accused of using privileged knowledge of the acquisition to reap a six-figure profit.
The U.S. Securities and Exchange Commission’s case against Anthony Marsico is still pending, records show.
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