NJ: Hemp Beverage Co-Owners Lawsuit Heats Up

NJ.com reports

Cannabis entrepreneur Kenneth VandeVrede is fighting back against a lawsuit claiming he stole the popular hemp-infused beverage brand Kaló from his co-founder and misappropriated the company’s corporate assets.

In recent court filings, VandeVrede denies all allegations made by Kaló co-founder Kenneth Voorhees III, former president of fragrance manufacturer Ungerer & Company, and his wife, Suzanne. The couple filed a lawsuit against VandeVrede and his Lincoln Park-based medical cannabis business, Hillview Med Inc., in March in Morris County, according to court records.

The lawsuit accuses VandeVrede of “pillaging” funds, resources and intellectual property from Kaló Brands LLC, a hemp infused beverage company founded in 2019 as a joint venture between VandeVrede and the plaintiffs.

VandeVrede filed a counterclaim May 24 in Morris County arguing the Voorhees’ failed to provide “required additional capital” and violated the terms of their operating agreement. He is asking the court to direct the Voorhees’ to sell their interest in Kaló.

VandeVrede previously said the two sides were working to settle the matter outside the courtroom and the they expected the case to be dismissed in mid-April without need for litigation.

However, Nikolas S. Komyati, the Voorhees’ attorney, said the defendants “reneged on the agreement and instead chose to file a baseless counterclaim.”

“We look forward to discovery of all of the claims that we have asserted against Hillview and Mr. VandeVrede, as well as some yet to be named individuals,” Komyati said. “We stand by our allegations and intend on proving them and look forward to doing so.”

Attorneys representing VandeVrede did immediately respond Thursday to requests for comment.

This is not the first time VandeVrede has been accused of misconduct. The recent allegations are similar to claims made in a 2018 lawsuit against VandeVrede when he was a senior executive of California-based cannabis agriculture company Terra Tech Corp.

The California complaint accused VandeVrede of committing fraud against Terra Tech, stealing its intellectual property and usurping corporate opportunities intended for the company in order to benefit his own interests, according to court filings.

One of the corporate opportunities allegedly diverted from Terra Tech was Voorhees’ February 2018 offer to work with VandeVrede on launching Kaló — referred to in the California complaint as “CBD Water,” the lawsuit said.

VandeVrede was terminated as Terra Tech’s chief agricultural officer and later resigned from its board. The two sides settled the lawsuit in September 2019 and Terra Tech purchased all of the stock in the company owned by the VandeVrede family, officials said.

Voorhees, who spent years developing the “unique and differentiated beverage” now known as Kaló, was unaware of his partner’s “checkered business history,” his lawsuit filed in March states.

VandeVrede comes from a third generation farming family in New Jersey with over 50 years of experience in the agriculture industry.

Voorhees offered VandeVrede 60% interest in the hemp beverage venture while he kept the remaining 40%, according to a copy of the operating agreement. Later, 15% of the Voorhees’ interest was transferred to Makalo, a marketing company engaged by the business.