Curaleaf (CURLF) denied allegations that it was suspected by the State of Illinois of allowing diversion out of its Litchfield, Ill. grow site, in an Oct. 20 motion to dismiss a former employee’s lawsuit.
Matthew Kalmick is suing the company in the Northern U.S. District Court of Illinois, with claims that he was denied a promotion and ultimately fired as a regional compliance officer for repeatedly raising concerns about inventory tracking and unlicensed pesticides at the Litchfield facility.
Kalmick filed suit on July 29, and almost three months later, Curaleaf filed a motion to dismiss based on the grounds that Kalmick was not retaliated against and he does not qualify for protection under the Illinois Whistleblower Act.
“We strongly reject the implication made in this lawsuit that Curaleaf faces ongoing compliance issues in Illinois,” said the company in an emailed statement. “The allegations made by a former employee seeking damages are both unverified and nearly two years old, bearing no relevance to our current operations. Curaleaf is responding to the lawsuit in the ordinary course and will vigorously oppose these allegations in its response.”
Ag Dept. noticed unaccounted for inventory, lawsuit says
Kalmick worked for Curaleaf as regional director of compliance from May 2020 to June 2021, and again from January 2022 until May 2024. After Kalmick returned to the company, he began covering Curaleaf’s central region in December 2023, which includes Illinois, Michigan, Missouri, North Dakota, Ohio and Pennsylvania.
Throughout 2023, the Illinois Department of Agriculture (IDOA) issued repeated warnings to Curaleaf over unaccounted for inventory and suspicion of diversion, according to the complaint. The state also warned the company about unlicensed pesticide use, improperly stored chemicals, obstructed emergency exits and a lack of personal protective equipment for employees.
Curaleaf is the parent company of Compass Ventures, which holds the license for the cultivation site.
Kalmick’s lawsuit claims that IDOA regulators noticed “missing, unlabeled, mislabeled, or unaccounted-for inventory,” ordering the facility to halt production for a full audit.
An IDOA spokesperson declined to confirm the alleged concerns from the state about the Litchfield site.
“All inspections and investigations of a licensee are confidential,” said Deputy Public Information Officer Cayti Costello. “IDOA does not comment on litigation, including that to which we are not a party.”
Kalmick said that his concerns were repeatedly rebuffed by his superiors.
“Kalmick observed a pattern in which [Senior Vice President Paul] Chialdikas increasingly excluded and isolated the Compliance team from the most serious issues at Litchfield. Initially, the exclusions occurred in internal discussions, but Kalmick later realized Chialdikas was working to sever Compliance’s direct communication with the IDOA,” said the complaint.
He also claimed that he was unfairly passed over for a promotion in March 2024 because he frequently raised compliance concerns. Kalmick had his lawyer request an internal investigation about the alleged retaliation.
By May, the company terminated Kalmick for spending too much time working remotely and for “dishonesty.”
“Defendant retaliated against Kalmick by denying him a promised promotion and ultimately terminating him because he refused to remain silent about what he reasonably believed were legal violations,” said the complaint.
Kalmick is seeking a declaration that Curaleaf violated the Illinois Whistleblower Act and lost compensation due to his denied promotion and termination.
“Curaleaf terminated Plaintiff from his role as a Regional Compliance Director in May 2024 due to Plaintiff’s dishonesty about his office attendance and Plaintiff’s performance issues. Curaleaf did not terminate Plaintiff as a result of any complaints he made to government regulators,” said the company’s six-page response.
Curaleaf argued that Kalmick’s claims do not reach the threshold of whistleblower status. In Illinois, that status includes being retaliated against after divulging possible wrongdoing in a court, administrative hearing or before a legislative committee. The motion further argues that whistleblower status does not apply to employees who simply note possible wrongdoing to their superiors.
“Moreover, and importantly, there is no indication that Plaintiff complained to any government official about his belief that Curaleaf was allegedly discouraging and/or obstructing Plaintiff from making disclosures to government officials,” said the response.
At about the same time the alleged compliance and safety issues were taking place, the Litchfield facility’s work force started to organize with United Food and Commercial Workers Local 881 over their own health and safety concerns, according to a Nov. 10, 2023, announcement from the union.
