METRC, Inc., the predominant provider of seed-to-sale tracking software used by state regulatory bodies overseeing legal cannabis markets across the U.S., faces serious allegations detailed in a recent lawsuit filed in Oregon. The lawsuit, brought by a former executive at METRC, accuses the company of whistleblower retaliation and wrongful termination under Oregon law. Central to the plaintiff’s complaint are allegations that METRC knowingly ignored substantial compliance violations within its tracking systems in California, potentially facilitating illegal diversion of cannabis products. The litigation raises critical concerns for cannabis regulatory compliance, not only in Oregon and California but also in the 25 other jurisdictions that rely on METRC’s systems.
Overview of the Complaint and Allegations
Plaintiff Marcus Estes joined METRC as an executive vice president after METRC’s April 2023 acquisition of Chroma Signet, a company Estes founded to develop blockchain-enabled QR-code technology. Initially optimistic about the position, Estes promoted a transition away from METRC’s RFID tag-based tracking technology toward his QR-based technology, which promised lower costs and enhanced security for cannabis tracking. Estes claims that he quickly encountered significant resistance within METRC management against moving away from the highly profitable RFID tags.
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