UPDATE: Vertical Harvest, a hydroponic farm in downtown Westbrook, faces a significant legal challenge as a broker sues over unpaid fees totaling $975,000. The lawsuit, filed on December 19, 2025, claims that Raiven Fund Management and its chair, Paul Dugsin, misled Waterside Commercial Finance regarding the repayment of a $48.75 million federal loan.
The urgent legal action is poised to impact Vertical Harvest’s operations and financial stability. Waterside alleges that the farm failed to adhere to a payment plan established after the loan closure, which included a $75,000 initial payment and a subsequent subordinated note agreement. According to court documents, if the full repayment is not made within eight months, Vertical Harvest could owe as much as $1.8 million, with interest accruing at an alarming 25% annual rate.
CEO Nona Yehia stated that the farm is focused on building revenue and serving customers despite the lawsuit. “We are aware of the filing and want to be clear that the claims being asserted are inaccurate and materially misleading,” Yehia emphasized in an email. She insists this is a commercial dispute stemming from complex financing arrangements, not a reflection of the farm’s operational status.
Waterside’s lawsuit also highlights Vertical Harvest’s alleged failure to disclose new financing exceeding $500,000 received from Raiven in September 2025. The lawsuit claims this breach of agreement further complicates the financial landscape for the hydroponic farm, which has already faced scrutiny for unpaid taxes amounting to nearly $45,000.
The lawsuit’s implications extend beyond just financial penalties. As Vertical Harvest aims to produce 3 million pounds of leafy greens annually, the ongoing legal battle raises questions about its future viability and the impact on local employment and food supply.
As this story develops, stakeholders are closely watching how Vertical Harvest responds to the claims and whether it can navigate this financial turmoil. The pressures of financing, operational challenges, and now a lawsuit could hinder its ambitious goals.
Next steps: Vertical Harvest must address these allegations and demonstrate its commitment to fulfilling its financial obligations. The outcome of this lawsuit could set a precedent for similar operations in the burgeoning hydroponic agricultural sector.
Stay tuned for updates as this situation unfolds.
