UPDATE: A lawsuit has just been filed against Vertical Harvest, a hydroponic farm in downtown Westbrook, alleging the farm failed to repay a broker nearly $975,000 linked to a crucial $48.75 million federal loan. The lawsuit, initiated by Waterside Commercial Finance on December 19, 2025, claims that Raiven Fund Management and its principal, Paul Dugsin, misled Waterside into deferring a significant fee.
This legal battle carries serious implications for Vertical Harvest, which aims to produce 3 million pounds of leafy greens annually. The company, which has secured close to $60 million in financing, recently became operational after construction delays. CEO Nona Yehia stated that the farm is focused on serving its customers and building revenue amid the ongoing lawsuit.
In a statement, Yehia emphasized the inaccuracies of the claims, stating, “We are aware of the filing and want to be clear that the claims being asserted are inaccurate and materially misleading.” She clarified that this dispute arises from a complex financing relationship, not from operational failures.
The lawsuit alleges that Vertical Harvest initially paid Waterside $75,000 at the loan’s closing. A subsequent agreement in April 2024 outlined the repayment terms for the remaining $900,000. If payments were not made within eight months, the amount owed would double to $1.8 million, with interest accruing at a staggering 25% annual rate.
Waterside’s legal action points to a breach of this agreement after Vertical Harvest allegedly received new funding exceeding $500,000 in September 2025 but failed to inform Waterside or make any payments. The lawsuit further claims that Dugsin confirmed senior lenders approved the repayment plan, justifying his individual liability in the case.
This lawsuit is not Vertical Harvest’s only financial hurdle. Earlier in the fall of 2025, the city of Westbrook filed a lien against the farm for nearly $45,000 in unpaid taxes, raising questions about its financial stability.
As this situation develops, the outcome of the lawsuit could significantly impact Vertical Harvest’s operations and its ability to fulfill its ambitious production goals. Observers are urged to watch closely as the court proceedings unfold and as Vertical Harvest navigates these challenges while maintaining its commitment to serving the community.
Stay tuned for further updates on this pressing story affecting the Westbrook community and the future of urban farming initiatives.
