Former Metrc Executive Alleges Company Enabled Illegal Cannabis Sales in Whistleblower Suit

LOS ANGELES- A former senior executive at Metrc, the leading cannabis compliance tracking company in the U.S., has filed a federal whistleblower lawsuit accusing the firm of turning a blind eye to unlawful activity, including illegal interstate cannabis sales.

Marcus Estes, who served as Executive Vice President at Metrc for about a year, filed the suit on April 4 in U.S. District Court in Oregon. He claims he was terminated after raising alarms internally about what he viewed as serious violations of both state and federal law, allegedly facilitated by the company’s software platform.

According to the complaint, Estes warned that Metrc was failing to alert regulators to suspicious patterns in cannabis tracking data—despite being contractually obligated to do so under its $40 million annual deal with the state of California. The suit is seeking damages and attorney fees.

Metrc Pushes Back

While Metrc has not yet formally responded in court, the company issued a statement to MJBizDaily strongly denying the allegations. Metrc called the claims “baseless,” characterizing them as part of a “retaliatory campaign” by a former employee who was let go due to performance concerns.

“This lawsuit is just a continuation of that campaign,” the company stated, adding that it has taken “active steps” to protect its systems and customers in response.

Ongoing Legal Disputes Between Parties

The whistleblower suit is not the only legal battle underway. Metrc is also pursuing a separate employment-related claim against Estes in Florida, where the company is seeking to claw back a $100,000 signing bonus it paid following its April 2023 acquisition of his software firm, Chroma Signet.

That case is expected to go to trial this fall after earlier mediation efforts failed.

Chroma Signet had developed an open-source barcode labeling system, which Metrc integrated into its Retail ID product. This tool allows consumers to scan QR codes to trace cannabis products through the supply chain.

Criticism of Metrc’s Tagging System

In his complaint, Estes also took aim at Metrc’s widely used RFID tag system, which cannabis operators must scan to comply with tracking regulations. Estes alleges that many in the industry consider the tags costly, environmentally wasteful, and of little practical use.

He further claims that when he raised these concerns internally, Metrc leadership—including Vice President of Product Management James Daley—dismissed him, stating that “flagging irregularities” was not part of the company’s responsibility. Estes says he was subsequently excluded from product meetings, including those for the Retail ID launch at MJBizCon 2024.

After his dismissal in March 2024, Estes alleges the company offered to waive recovery of his signing bonus if he signed a release waiving any claims against Metrc. When he declined, the company filed suit.