Terra Tech Chairman and CEO, Derek Peterson, issued the following statement in response to the lawsuit:
“Far from the image portrayed in recent interviews, Heidi Loeb Hegerich is in fact a wealthy, sophisticated investor with a history of disputes with business partners. Ms. Hegerich was married to David Loeb, one of the founders of Countrywide Mortgage. She has described herself as a business executive, real estate developer and self-described ‘mistress to the rich and famous.’ We reaffirm our commitment to our shareholders to correct any misleading and inaccurate reports and remain committed to providing accurate information to our investors.”
Ms. Hegerich’s lawsuit and recent interviews are an attempt to manipulate Terra Tech into paying money she is not owed. The real victims here are the 120,000+ Terra Tech shareholders who may have suffered losses from their investment in the Company as a result of her spurious accusations.
As Ms. Hegerich is well-aware, her allegations ignore the significant investment and expertise required to obtain a license and build out a retail facility. In fact, Terra Tech actually funded over 2.9 times the amount invested by Ms. Hegerich, including buying all of the product inventory to open the location and carrying operating losses until the opening of recreational sales.
Ms. Hegerich also neglected to mention that on numerous occasions, Terra Tech has offered to purchase her share of the business at a greater than eight times return on her investment within two years.
Instead, she has raised a number of false and misleading allegations:
Not properly audited:
Terra Tech is a publicly traded company audited by one of the largest accounting firms in the US. Additionally, MediFarm I has engaged an independent third-party accounting firm to review the books and records for the Reno business. Any allegations against the Company’s accounting practices are completely baseless in fact or evidence.
False statements in 10K:
Terra Tech’s 10-K does not contain any false statements. The Company’s auditors and outside counsel have both reviewed the 10-K.
Breach of operating agreement for dispensary operations:
Terra Tech has not received any equity distributions from the Reno business. It has actually invested several million dollars into the business.
Stock manipulation:
Terra Tech has not manipulated the stock. The Company has made all required public filings and disclosures, and complies with all applicable laws, rules and regulations.
Admitted to numerous errors in third party accounting:
On the contrary, Terra Tech has not admitted any errors in the third-party accounting. In fact, the third-party review found no material discrepancies in MediFarm I’s accounting.
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