On May 11, 2018 a
Exhibit,Appendix
was filed
involving a dispute between
Cresco Labs Llc, An Illinois Limited Liability Company,
Cresco Labs New York, Llc,
A New York Limited Liability Company,
and
Eric Sirota,
Fiorello Pharmaceuticals, Inc.,
A New York Corporation,
John Does 1 - 10,
Susan Yoss,
for Commercial Division
in the District Court of New York County.
Preview
FILED: NEW YORK COUNTY CLERK 12/14/2021 11:15 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 235 RECEIVED NYSCEF: 12/14/2021
Exhibit F
Excerpts from the Deposition of Charles Bachtell, Taken January 30, 2020
Index No. 652343/2018 Motion Seq. No. __
FILED: NEW YORK COUNTY CLERK 12/14/2021 11:15 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 235 Confidential - Attorneys' Eyes Only RECEIVED NYSCEF: 12/14/2021
Page 1
·1· · · · · · · · · · ·CHARLES BACHTELL
·2· · · · · SUPREME COURT OF THE STATE OF NEW YORK
· · · · · · · · · · · COUNTY OF NEW YORK
·3
· · CRESCO LABS, NEW YORK, LLC a· ·)
·4· New York limited company, and· )
· · CRESCO LABS, LLC, an Illinois· )
·5· limited liability company,· · ·)
· · · · · · · · · · · · · · · · · ·)
·6· · · · · Plaintiff,· · · · · · ·)Index No.
· · · · · · · · · · · · · · · · · ·)
·7· · · ·- against -· · · · · · · ·)652343/2018
· · · · · · · · · · · · · · · · · ·)
·8· · · · · · · · · · · · · · · · ·)
· · FIORELLO PHARMACEUTICALS, INC.,)
·9· a New York corporation, ERIC· ·)
· · SIROTA, an individual, SUSAN· ·)
10· YOSS, an individual, and· · · ·)
· · JOHN DOES 1-10,· · · · · · · · )
11· · · · · · · · · · · · · · · · ·)
· · · · · · Defendants.· · · · · · )
12
· · --------------------------------
13
14· · · · · · · · · · · ·CONFIDENTIAL
15· · · · · · · · · ·ATTORNEYS' EYES ONLY
16· · · · ·VIDEOTAPED DEPOSITION OF CHARLES BACHTELL
17· · · · · · · · Thursday, January 30, 2020
18· · · · · · · · · · Chicago, Illinois
19
20
21
22
23· Reported By:
24· TRICIA J. LATHOURIS, CSR, RPR
25· JOB NO. 174109
TSG Reporting - Worldwide· · 877-702-9580
FILED: NEW YORK COUNTY CLERK 12/14/2021 11:15 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 235 Confidential - Attorneys' Eyes Only RECEIVED NYSCEF: 12/14/2021
Page 323
·1· · · · · · · · · · ·CHARLES BACHTELL
·2· · · MR. VAIL:· If you want us to do it, we'll do
·3· it --
·4· · · · · (Multiple parties speaking.)
·5· BY MS. IZOWER-FADDE:
·6· · · Q· ·Do you have George Scorsis' telephone
·7· number?
·8· · · A· ·I don't know.
·9· · · Q· ·But if you had that, that would also be in
10· your phone?
11· · · A· ·Yes.
12· · · MR. VAIL:· Objection.· Foundation.
13· · · MS. IZOWER-FADDE:· Okay.· So we would request,
14· after today, that you provide that information to
15· your counsel to provide to us.· And I assume that
16· your counsel is going to take it under advisement
17· and consider it and we will move on.
18· · · MR. VAIL:· We will consider that request, along
19· with the others that you've made today.
20· BY MS. IZOWER-FADDE:
21· · · Q· ·At some point, Cresco entered into an
22· agreement with -- to acquire Valley Agriceuticals;
23· isn't that correct?
24· · · A· ·Correct.
25· · · Q· ·And did they submit that initial agreement
TSG Reporting - Worldwide· · 877-702-9580
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FILED: NEW YORK COUNTY CLERK 12/14/2021 11:15 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 235 Confidential - Attorneys' Eyes Only RECEIVED NYSCEF: 12/14/2021
Page 324
·1· · · · · · · · · · ·CHARLES BACHTELL
·2· to the DOH -- the New York State Department of
·3· Health seeking it's approval for the acquisition?
·4· · · MR. VAIL:· Objection.· Foundation.
·5· · · A· ·They submitted an agreement.· Again, there
·6· -- yes, there was an agreement submitted to the DOH
·7· for approval.
·8· BY MS. IZOWER-FADDE:
·9· · · Q· ·Isn't it true that the DOH initially
10· rejected the Cresco/Valley deal?
11· · · A· ·I don't recall.
12· · · Q· ·Isn't it true that the DOH wouldn't approve
13· it in the form it was initially submitted?
14· · · A· ·I -- I don't recall.
15· · · Q· ·Do you recall the DOH being unwilling to
16· accept a purchase of a hundred percent of Valley by
17· Cresco?
18· · · A· ·I don't recall.
19· · · Q· ·Do you recall the DOH objecting to what it
20· considered a transfer of the license?
21· · · A· ·I don't recall.
22· · · Q· ·Did the initial Valley deal include a
23· payment for -- in the event of adult legalization?
24· · · A· ·There -- there is some sort of
25· consideration associated with an adult-use law
TSG Reporting - Worldwide· · 877-702-9580
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FILED: NEW YORK COUNTY CLERK 12/14/2021 11:15 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 235 Confidential - Attorneys' Eyes Only RECEIVED NYSCEF: 12/14/2021
Page 325
·1· · · · · · · · · · ·CHARLES BACHTELL
·2· getting passed in New York.· Off the top of my head,
·3· I don't -- I don't recall the exact form of it.
·4· · · Q· ·Did that survive to the ultimate version of
·5· the Valley deal?
·6· · · A· ·I -- I think so.
·7· · · Q· ·Was there a change in the pricing of the
·8· Valley deal after the DOH approved it?
·9· · · A· ·I don't believe so.
10· · · Q· ·You don't recall a downward adjustment to
11· the purchase price of Valley before it -- between
12· August of 2019 and its closing in October of 2019?
13· · · MR. VAIL:· Objection to form.· Foundation.
14· · · A· ·I don't -- I don't recall an adjustment.
15· BY MS. IZOWER-FADDE:
16· · · Q· ·Do you recall a change in the portion of
17· the consideration for the deal that was to be done
18· in cash versus stock?
19· · · MR. VAIL:· Objection to form.
20· · · A· ·I don't -- I don't recall.· I don't.
21· BY MS. IZOWER-FADDE:
22· · · Q· ·Isn't it true that after DOH approval and
23· after having final definitive documents with Valley,
24· that Cresco went back and insisted on a change in
25· the portion of cash to stock for the ultimate Valley
TSG Reporting - Worldwide· · 877-702-9580
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FILED: NEW YORK COUNTY CLERK 12/14/2021 11:15 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 235 Confidential - Attorneys' Eyes Only RECEIVED NYSCEF: 12/14/2021
Page 326
·1· · · · · · · · · · ·CHARLES BACHTELL
·2· deal?
·3· · · A· ·I don't -- I -- I don't recall that.
·4· · · Q· ·Did you provide the New York LOI to David
·5· Ellis?
·6· · · MR. VAIL:· Objection.
·7· · · MR. LEFTON:· Fiorello.
·8· · · MR. VAIL:· Form.
·9· BY MS. IZOWER-FADDE:
10· · · Q· ·The Fiorello LOI to David Ellis?
11· · · MR. VAIL:· Objection.· Form.
12· · · A· ·I don't recall.
13· BY MS. IZOWER-FADDE:
14· · · Q· ·Did you ever communicate with the New York
15· Department of Health about Fiorello?
16· · · A· ·I don't believe so.
17· · · MR. VAIL:· Okay.· We're at 7:09 now.· I'll give
18· you some leeway if you'd like to wrap up.
19· · · MS. IZOWER-FADDE:· Well, actually what I'd like
20· to say instead is that there are --
21· · · MR. VAIL:· You're using your time.
22· · · MS. IZOWER-FADDE:· That's fine.· So is that I'm
23· not going to close this deposition for several
24· reasons.· I will note for the record that we
25· requested -- and, in fact, there was an agreement
TSG Reporting - Worldwide· · 877-702-9580
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Document Filed Date
December 14, 2021
Case Filing Date
May 11, 2018
Category
Commercial Division
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