Business
Curaleaf’s Curious Cannabis Industry Status
Curaleaf—a major cannabis company in the U.S. with international expansion on its drawing board, has a few bubbling controversies that will just not die.
Curaleaf is currently the dominant U.S. cannabis company by market share. By design, the company has entered state markets (and increasingly international ones like Germany) where the barriers to entry are high. This is how it protects its position.
No matter its omnipotence, however, the scandals surrounding the company keep coming—including this summer—and there are some who are wondering about the ability of Curaleaf.
It could be that this new scrutiny is merely part of the reflected media glare on the cannabis industry in general thanks to both advancing legalization globally, not to mention the recent implosion of Juicy Fields. Indeed the deets on the self-destruction of the crowdfunding, e-growing company continue to be satisfyingly “juicy,” including recently revealed connections to German aristocracy to blood the hounds for more.
In part such scrutiny is also occurring because it is clear that the stakes are increasingly higher. It is also clear that no matter how enthusiastic one is about cannabis reform, the sleezier side of the industry to date has still not dissipated in any large measure.
No matter the reason, this summer’s sudden interest in cannabis scoundrels seems a bit like a repeat of the purging seen in 2019—of executives if not the companies themselves—and which affected large and supposedly indomitable companies including CannTrust and Canopy.
Whatever the immediate trigger, Curaleaf’s PR department has their work cut out for them.
Source of Funds: The Russian Connection
Sources of funding are increasingly an issue for the industry. In part this is because of the spectacular flameouts so far of other “innovative” strategies to raise cash. It is also because legalization creates a mandate for much cleaner sources of finance.
This is one of the biggest liabilities that Curaleaf faces. Here is why.
Curaleaf’s owners have long-standing and significant Russian roots. The rumors that they were facing sanctions this spring after Russia invaded Ukraine were rampant on social media (even though not true).
Here is what is not disputed. Company founders Boris Jordan and Andrey Blokh have had long standing business relationships with both Putin and sanctioned tycoon Roman Abramovich. Even if no direct link between these men and their cannabis endeavours can be traced to Russian oligarchs specifically, there are still plenty of questions about the source of funds behind the company. According to some experts, every business with historical financial links to Russian money should be looked on with suspicion (no matter the vertical). Oligarchic capital, as it is known, flows everywhere, and it is very possible that it has made its way into the global cannabis industry, even if not at Curaleaf.
That said, the company has been the target of this kind of allegation since Barron’s published the same in 2018. No matter how many assertions both Jordan and Blokh have made about their dual citizen status or their American patriotic leanings, the reality is that both men have been able to stay in business in the country even after Putin began to assert state authority over the private sector.
Those who oppose the company say that choosing Main Street cannabis over Wall Street cannabis is the only way to really drive such influences from the industry. Given how the state market (and now Europe) are proceeding with legalization, the mom-and-pop side of the industry is absolutely under threat from international pools of cash looking for profitable niche markets to invest in.
Labelling Problems
The company’s reputational issues do not stop with its founders, however. Its operations are increasingly in the spotlight, if not landing the company in court. And it is not a good look, specifically because it points to (at minimum) shoddy production standards. Specifically, in 2021, reports emerged that Curaleaf’s Select CBD brand contained psychoactive Delta 9 THC. The company claims that a single batch of products with THC was mislabelled. No matter the cause or whether it was one batch or multiple ones that were affected, hundreds of consumers became sick, including an Idaho man who suffered stroke-like symptoms before dying several weeks later.
So far, Curaleaf has settled 10 cases but not the wrongful death suit. Beyond this a new class action looms for the company from those whose claims have still not been addressed.
Outstanding Legal and Financial Liabilities
The problems do not stop here. Curaleaf is also entangled in a web of lawsuits regarding a failed CBD company.
It is also facing legal action for violating labour law in several U.S. states—and for particularly egregious infractions that appear to indicate that management, much less the founders, do not care about the welfare of either consumers or employees. Specifically, the company now stands accused of illegally collecting employees’ tips in violation of the Fair Labor Standards Act (FLSA)—an Illinois state law. In Massachusetts, the company was found to have violated labor laws when it tried to prevent employees from unionizing.
With all these reputationally damaging legal problems, there are also many, including investors, who are wondering if the company will manage to survive all of these problems. While Curaleaf certainly has raised a significant amount of cash, the vast majority has been spent on acquisitions. Even though the company continues to perform well financially—revenue was up 20% year-over-year for the first quarter of this year and operating income increased 21%—there are clearly clouds on the horizon, and all take cash to solve.
The Google of Cannabis?
Since the beginning of legalization, there have been wildly successful entrepreneurs who have carved a piece of history (if not a great deal of money) out for themselves with a vision to monopolize the nascent industry. However, no matter how big and bad they get, this is no guarantee of legitimacy, much less longevity or market control.
Canopy Growth, for example, blew into the European market in the middle of the last decade with bravado and bucks to spare. Yet within a few short years, they had failed to gain a German cultivation license, sold many of their earlier acquisitions, and saw several waves of exits for senior management starting with the firing of founder Bruce Linton by the board. This March it was delisted from the S&P/TSX 60 Index. Its stock has fallen 90% since it was added to the index in the spring of 2019.
The reality is that when full and final legalization comes, the rules of the road, which tend to favor Mad Max rather than Mr. Roger’s Neighborhood, begin to weed out those who cannot make a transition to legitimacy.
The trap doors are everywhere.
It may be that this summer, both investors and consumers, if not regulators beyond that, begin to make other choices.
Source: https://hightimes.com/business/curaleafs-curious-cannabis-industry-status/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
-
Business3 years agoPot Odor Does Not Justify Probable Cause for Vehicle Searches, Minnesota Court Affirms
-
Business3 years agoNew Mexico cannabis operator fined, loses license for alleged BioTrack fraud
-
Business3 years agoAlabama to make another attempt Dec. 1 to award medical cannabis licenses
-
Business3 years agoWashington State Pays Out $9.4 Million in Refunds Relating to Drug Convictions
-
Business3 years agoMarijuana companies suing US attorney general in federal prohibition challenge
-
Business3 years agoLegal Marijuana Handed A Nothing Burger From NY State
-
Business3 years agoCan Cannabis Help Seasonal Depression
-
Blogs3 years agoCannabis Art Is Flourishing On Etsy
