Bright Green Hit With $104 Million Legal Blow Amid Bankruptcy Proceedings

A New Mexico court has delivered a staggering financial verdict against cannabis firm Bright Green, awarding a former executive more than $104 million in damages. The ruling comes at a particularly challenging time for the company, which is currently navigating Chapter 11 bankruptcy protection.

Jury Finds Wrongful Cancellation of Shares

This week, a jury determined that Bright Green improperly invalidated five million shares belonging to former manager John Fikany. The panel specifically assigned $103.1 million in damages for the unlawful cancellation of Fikany’s stock holdings. Both current CEO Lynn Stockwell and former CEO John Stockwell were found liable for the share cancellation.

The legal dispute traces back to a 2018 agreement, when Fikany was recruited to facilitate a deal for Bright Green’s proposed medical cannabis production facility. A previous legal proceeding had already established that the shares were not contingent on the success of the deal and that Bright Green lacked the legal authority to cancel them. This latest judgment represents the final determination of financial damages.

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Corporate Overhaul Coincides With Legal Setback

The multimillion-dollar judgment arrives at the worst possible moment for Bright Green. The company filed for Chapter 11 bankruptcy protection on February 22, 2025. As part of its restructuring efforts, Bright Green has completely exited the cannabis business and now focuses on manufacturing other controlled substances.

A significant corporate development followed on September 15, 2025, when the company merged with PharmAGRI Capital Partners. Through this acquisition, PharmAGRI assumed control over Bright Green LLC, appointing Lynn Stockwell as CEO of the newly formed entity. The combined organization intends to implement Tesla robotics technology within its operational framework.

Financial Fallout and Future Challenges

Market observers are now questioning how the substantial court judgment will impact the already financially distressed company. Bright Green’s over-the-counter shares currently trade at approximately $0.00060 – rendering them virtually worthless. The initial bankruptcy proposal outlined repayment plans for unsecured creditors through a combination of cash and newly issued common stock, accompanied by a 1:50 reverse stock split.

Despite PharmAGRI’s announced intention to pursue a public listing later this year to gain full market access and pursue federal contracts, this substantial legal liability could disrupt their timeline. While the strategic pivot toward pharmaceutical infrastructure and robotics represents a forward-looking vision, the company must first navigate the immediate financial repercussions of this legal decision.