Whoopi Goldberg’s push into the cannabis world just hit a major roadblock. Her company, WhoopFam, is locked in a heated court fight with a former New Jersey mayor over a failed plan to open a pot shop in Paterson. This clash involves big money claims and a convicted politician, raising questions about trust in business deals. Stick around to uncover the twists.
The Heart of the Legal Battle
A company backed by actor Whoopi Goldberg has filed a lawsuit against Joey Torres, the ex-mayor of Paterson, New Jersey. The suit centers on a botched agreement to launch a marijuana dispensary. WhoopFam says it leased space from Torres’ nonprofit, House of HOPE, and poured in cash expecting smooth city approval.
WhoopFam claims it lost $167,000 due to broken promises. Court papers show the group relied on Torres’ word that the project would get the green light. When things fell apart, both sides started trading lawsuits. This mess highlights risks in the growing cannabis industry, where partnerships can sour fast.
The dispute kicked off when WhoopFam partnered with House of HOPE for a spot on 1st Avenue in Paterson. Torres, who once led the city, runs the nonprofit. But delays and denials stalled the dispensary dream, leading to finger-pointing in court.
Joey Torres’ Troubled Past
Joey Torres is no stranger to legal trouble. He served as Paterson’s mayor but landed in prison for corruption. In 2017, Torres got convicted for forcing city workers to do personal jobs on public time, like fixing up family properties. He spent over a year behind bars.
This history adds fuel to the current fight. WhoopFam argues Torres misled them about the dispensary’s chances. Torres counters that WhoopFam backed out and owes rent. His side filed the first suit, prompting WhoopFam’s response.
Paterson, a working-class city in New Jersey, has seen its share of cannabis ventures since the state legalized recreational sales in 2021. But this case stands out because of the high-profile names involved. It shows how past scandals can haunt new business tries.
Torres’ nonprofit aimed to use the dispensary for community good, like job training. Yet, the partnership crumbled amid claims of false assurances.
Money and Promises at Stake
WhoopFam details heavy spending in its court filings. The company says it shelled out for leases, plans, and other setup costs, all based on Torres’ guarantees. When city officials didn’t approve, the deal tanked.
Here’s a quick breakdown of the key financial claims:
- Lease payments: WhoopFam paid upfront for the 1st Avenue site.
- Development costs: Money went into designs and permits.
- Lost opportunities: The stall blocked other business moves.
Torres’ team fired back, saying WhoopFam breached the lease by not paying full rent. They seek damages too. This back-and-forth could drag on, with both sides digging in.
The cannabis market in New Jersey is booming, with sales topping $1 billion last year, per state reports. But stories like this remind entrepreneurs to check partners carefully. WhoopFam, focused on women-led products, wanted to tap into that growth.
One key issue: Did Torres use his old mayor ties to promise approvals he couldn’t deliver? Court will decide.
Impact on Cannabis Growth in New Jersey
New Jersey’s weed industry has exploded since legalization. Over 100 dispensaries now operate statewide, creating jobs and tax revenue. Paterson, with its diverse population, seemed ripe for a new spot.
But this lawsuit could chill similar deals. Business owners might think twice about teaming with figures like Torres. It also spotlights challenges for celebrities entering the space, where regulations are strict.
WhoopFam isn’t new to cannabis. Goldberg launched it to offer products like edibles and tinctures, often aimed at women’s health. This Paterson plan was a big step to expand retail presence.
Experts say such disputes are common in young industries. A 2023 study by the New Jersey Cannabis Regulatory Commission found that approval delays hit 40% of applications. That stat, from last year’s annual report, explains some of the friction here.
What’s Next for WhoopFam and Torres
The case is heating up in New Jersey courts. Recent filings show WhoopFam’s countersuit, filed just days ago, demands repayment and more. Torres’ group wants the lease enforced or damages paid.
This fight might settle out of court, but if not, a trial could reveal more details. For Goldberg, it’s a bump in her business road, but her star power keeps attention high.
Paterson residents watch closely. A successful dispensary could bring jobs, but the drama might scare off investors.