Ex-Curaleaf Executive Files Suit Alleging Ignored Warnings on Inventory Shortfalls at Illinois Facility

LOS ANGELES – A former compliance director for Curaleaf Holdings Inc. has filed a federal lawsuit accusing the Cannabis MSO of overlooking repeated alerts about missing inventory and unlicensed pesticide applications at its Illinois cultivation site, prompting state regulators to suspect widespread product diversion.

Matthew Kalmick, who oversaw compliance in the central U.S. until his dismissal in May 2025, filed the 12-page complaint on July 29, 2025, in the U.S. District Court for the Northern District of Illinois.

He accuses Curaleaf of dismissing alerts on untracked Cannabis at the Litchfield facility, where state inspectors in February 2025 discovered a “vast amount of unaccounted-for inventory” suggestive of systemic diversion. The halt on shipments followed, as Illinois Department of Agriculture officials probed potential theft alongside other violations.

Kalmick’s account begins with his return to central operations in November 2024, amid a company restructuring. By December, Bresha Brewer, the state’s Cannabis Bureau Chief at the time, had informed a Curaleaf colleague of ongoing issues at Litchfield, including unresolved inspection findings and signs of inventory shortfalls. Kalmick says he escalated these to executives, including Senior Vice President Paul Chialdikas, in at least 12 instances, highlighting risks to state and federal standards.

The February 14, 2025, inspection revealed deeper problems: missing, unlabeled or mislabeled products, plus safety breaches like unlicensed pesticide applications, improper chemical storage, obstructed emergency exits, and insufficient protective gear for staff. Kalmick alleges similar lapses at Curaleaf’s Fargo, North Dakota, site, where fines were issued but no fixes implemented despite his recommendations.

The suit portrays former Chief Executive Matt Darin as actively undermining Kalmick’s dealings with Illinois officials while blocking his advancement. Kalmick, who managed compliance across six East Coast states from his Chicago base, says he was let go on May 20, 2024, under a fabricated pretext. He seeks unspecified damages in a jury trial, pressing claims under whistleblower safeguards and anti-retaliation statutes.

Curaleaf, which operates more than 150 dispensaries nationwide and reported $1.34 billion in net revenue last year, has not publicly addressed the matter. A company spokesman, Jordon Rahmil, declined comment when reached by email, and court filings show Curaleaf seeking extra time to respond to the complaint.

The case stands out in Illinois, a $2 billion market capped at 21 large-scale cultivation licenses with strict canopy limits to curb excess supply. Such controls have largely shielded the state from the diversion woes plaguing looser regimes in places like Oregon. Yet federal records from 2023 reveal prior scrutiny of Litchfield, including three serious OSHA violations tied to respirator protocols, settled for $16,800. The Illinois Department of Agriculture maintains confidentiality on licensee probes and offered no further details.

This filing underscores a core tension. Rapid scaling often strains internal controls in a field still navigating patchwork rules. While Curaleaf’s footprint bolsters its edge in mature markets, lapses like those described here risk eroding trust with buyers, overseers, and investors. Resolution may ultimately be contingent on further investigation, but for now, the case serves as a reminder that compliance is not optional. It is the foundation of sustainable growth in transparent and clean label Cannabis.