A group of investors want their $1.25 million back from NuVue Pharma, the Pueblo marijuana business, and its owner, Dr. Malik Hasan.
In a lawsuit originally filed in El Paso County, the investor group claims they are entitled to their $1.25 million investment back from NuVue because they declined to file financial disclosure reports on their spouses as required by the state Marijuana Enforcement Division.
The lawsuit says the group, called NuVue Investors LLC, provided the $1.25 million to NuVue in 2016 under an agreement with Hasan that called for them to obtain the necessary approval from the state to be able to invest in a marijuana business.
At the time, the investment would have given them about a 5 percent interest in the business, according to the lawsuit.
The group says they followed the terms of the agreement, investing $1.25 million in the business, while pursuing approval from the state Department of Revenue.
The problem emerged in 2017 when state officials said that extensive financial disclosures were needed from their wives and spouses as well. The suit argues that had the investors known that would be required, they never would have entered into an agreement with Hasan.
They are asking for the return of the $1.25 million and other damages a jury finds justified, as well as having their investment agreement with Hasan nullified.
Nick Gradisar, Hasan’s attorney, said the lawsuit was filed in March and has since been moved to Pueblo County.
Hasan contends that he has fulfilled his part of the agreement, according to Gradisar.
“But this is all in the very initial stages,” he said.