Terra Tech Settles $6.3 Million Lawsuit with Blüm Dispensary Co-Owner in Reno
Terra Tech, the California-based company behind Blüm dispensary in Midtown Reno, settled a contentious lawsuit with local co-owner Heidi Loeb Hegerich for $6.3 million in February, as revealed in recent financial filings with the U.S. Securities and Exchange Commission. Loeb Hegerich had accused the firm of fraudulently diverting millions in dispensary profits to prop up failing ventures, alongside claims of elder abuse and conspiracy. The resolution ends a legal battle that exposed tensions in Nevada's rapidly expanding cannabis industry, though the full transfer of her ownership stake remains pending.
Lawsuit Alleges Profit Skimming and Betrayal
Heidi Loeb Hegerich, widow of Wingfield Springs developer David Loeb and a grandmother known for local philanthropy, filed her November lawsuit detailing 50 claims against Terra Tech and associates. She alleged partners siphoned funds from Blüm Reno—opened in January 2017, months before Nevada legalized recreational marijuana—to support underperforming company projects. The suit also named Mikel Alvarez, her former personal assistant of 15 years, accusing him of stealing money and personal items; Alvarez, who departed in May for the gaming sector, described their bond as maternal but confirmed its permanent end.
Settlement Terms and Company Denial
Terra Tech rejected all allegations, stating in SEC filings that the $6.3 million payment represents no admission of liability. Loeb Hegerich's attorney, Mark Simons, noted her relief at closing the chapter, with the deal incomplete until her license transfers fully to the company—her name persists in Nevada's marijuana ownership database, last updated May 1. Terra Tech did not respond to inquiries this week, underscoring the quiet nature of the resolution amid ongoing regulatory scrutiny in the cannabis sector.
Shifting Focus in Nevada's Cannabis Landscape
Loeb Hegerich initially invested in Blüm to support Nevada's education system, aware that cannabis taxes fund schools. Her attorney emphasized she will redirect settlement proceeds away from marijuana, prioritizing direct community aid over further industry entanglement. This dispute highlights risks in cannabis partnerships, where rapid legalization since 2017 has spurred growth but also disputes over profit allocation and ownership in a market blending local investors with out-of-state firms.
