Cannalytics accused of stealing secrets from BelCosta Labs

California-based BelCosta Labs is accusing Thymer Analytics LLC and Catalyst Lab Solutions LLC of faking a merger plan in order to steal trade secrets. BelCosta claimed that Thymer has historically struggled financially due to its failure to develop its own proprietary cannabis testing and analytics procedures.

The complaint states that around September 2021, Myron Ronay, the chief executive officer of BelCosta, relocated from California to Florida to open a cannabis testing lab because one of BelCosta’s largest customers was expanding to Florida and wanted to work with the company.

BelCosta also began reaching out to laboratories operating in Florida regarding potential merger/ acquisition deals within the state.

Greg Gottheimer, an owner and manager of Thymer and Catalyst, which had labs in Florida under the Cannalytics banner, pitched a merger to Ronay. The two signed an Non-Disclosure Agreement in December 2021 that stated if the agreement was breached, BelCosta would be entitled to damages. As the deal moved forward, BelCosta agreed to share certain information with Gottheimer and Thymer.

A letter of interest was signed in March 2022 and extended in June 2022. BelCosta said in the complaint that it continued to divulge more information to Gottheimer. BelCosta claims that it provided services, equipment, and experience to Thymer, including, but not limited to:

• Freezers and laboratory supplies to Thymer’s New Jersey lab
• Its custom terpene report with Gottheimer
• BelCosta’s custom method for residual solvents and terpenes,  at the request of Miller
• Equipment to New Jersey, Maryland, and Pennsylvania

By November 2022, the two parties entered into a formal merger agreement and announced the deal publicly. However, it wasn’t long before the relationship between the two companies deteriorated.

BelCosta claims it discovered that Gottheimer had hired a salesperson at a salary of $120,000 per year, in violation of the agreement. The complaint also stated that Gottheimer began to take a consulting fee of $150,000 from Thymer without BelCosta’s permission or knowledge, and in violation of the agreement.

Another Thymer officer, Charles Gentile, wanted to renegotiate the terms of the deal, which Ronay declined. The complaint stated: “When Ronay did not agree to renegotiate, Gentile threatened to physically harm Ronay.”

As the process dragged on, the merger that was expected to close in August 2023 was delayed. In November 2023, Thymer said it would not go through with the merger.

BelCosta claims that Thymer entered into the agreement solely to obtain BelCosta’s confidential information, resources, clients, contacts, and services, and never had any intention to merge.

Thymer claims that BelCosta’s financial situation changed such that it didn’t want to move forward. BelCosta’s California business fell by 12% as the state’s cannabis industry has contracted. Ronay also claimed that much of his time was being spent fixing problems with Thymer.

BelCosta also accused Thymer of doing the same thing to Atlantic Test Labs, Inc. and Annapolis Engineering Services, Inc. in Maryland. Atlantic Test Labs is also suing Thymer as well as Green Analytics in Maryland for misappropriating trade secrets.