Terra Tech Corp., the California-based company behind Blüm dispensary in Midtown Reno, agreed to a $6.3 million settlement in February with local co-owner Heidi Loeb Hegerich, its financial filings with the U.S. Securities and Exchange Commission show. The payout resolves a November lawsuit where Hegerich accused the firm of fraudulently diverting millions in dispensary profits to prop up failing ventures. Neither side admitted liability, but the deal highlights tensions in Nevada's fast-expanding cannabis industry, launched with recreational legalization in 2017.
Lawsuit Alleges Profit Skimming and Betrayal
Hegerich, a widow, philanthropist, and grandmother, launched the suit with 50 claims including fraud, conspiracy, and elder abuse against Terra Tech executives. She contended her partners siphoned funds from Blüm Reno, which opened in January 2017 alongside Terra Tech leaders, just months before voters approved recreational sales. The allegations painted a picture of mismanagement, with profits allegedly rerouted to underperforming company projects amid Nevada's budding market, where taxes partly fund public schools—a motive Hegerich cited for her initial investment.
Settlement Closes Chapter Without Admissions
Terra Tech denied all accusations and stressed in SEC documents that the settlement carries no admission of wrongdoing. Hegerich's attorney, Mark Simons, said Wednesday she feels relieved to move forward. The agreement awaits full completion, pending transfer of her ownership license to Terra Tech; her name lingers in Nevada's marijuana establishment database, updated May 1. Former personal assistant Mikel Alvarez, accused of theft in the suit, called the fallout final after 15 years, shifting to Nevada's gaming sector.
Shifting Focus in Nevada's Cannabis Landscape
Nevada's recreational market has drawn national investors like Terra Tech since 2017, fueling disputes over control and profits in a sector prone to rapid scaling and regulatory hurdles. Hegerich now plans to redirect settlement proceeds away from cannabis, favoring direct community aid over state-taxed industry bets, per Simons. The resolution underscores risks for local partners in out-of-state backed operations, where differing visions can fracture ventures built on legalization's promise.
