UPDATE: Vertical Harvest, a hydroponic farm located in downtown Westbrook, is embroiled in a serious legal battle, as Waterside Commercial Finance has filed a lawsuit over an alleged unpaid fee of $975,000. The lawsuit, lodged on December 19, 2025, claims that Raiven Fund Management and its principal, Paul Dugsin, misled Waterside into deferring payment related to a $48.75 million federal loan intended to kickstart the farm’s operations.
This urgent case has immediate financial implications for Vertical Harvest, which is now operational but has faced multiple financial challenges since its inception. Waterside is seeking not only the outstanding amount but also damages and legal fees, potentially escalating the financial strain on Vertical Harvest.
According to court documents, Waterside initially received $75,000 upon the loan’s closing but entered into a “subordinated note agreement” in April 2024 to outline the repayment terms for the remaining $900,000. The agreement stipulated that failure to repay within the specified timeline could lead to the debt doubling to $1.8 million, with interest accruing at an alarming rate of 25% annually.
CEO Nona Yehia responded to the lawsuit, asserting that the claims are “inaccurate and materially misleading.” She emphasized that the dispute pertains to complex financing arrangements rather than operational failures. “We are focused on operating the business and serving our customers as this matter unfolds,” she stated in an email.
The lawsuit is not Vertical Harvest’s first financial hurdle. Earlier this year, the city of Westbrook filed a lien against the farm for almost $45,000 in unpaid taxes. Yehia previously indicated that the farm was not yet operating at full capacity, raising concerns about its financial viability.
Waterside claims that Dugsin confirmed senior lenders approved their repayment plan, a statement that forms a core part of the lawsuit. If it is determined that Dugsin misrepresented this approval, he could face personal accountability, while Raiven may also be held liable due to Dugsin’s role.
The lawsuit also highlights a breach of agreement concerning new financing. Vertical Harvest allegedly received over $500,000 in new capital from Raiven in September 2025 but failed to disclose this to Waterside or make required payments.
As this legal battle unfolds, the future of Vertical Harvest remains uncertain. The hydroponic farm, capable of producing 3 million pounds of leafy greens annually, faces significant financial and operational challenges. Stakeholders and consumers alike will be watching closely to see how this situation develops.
Stay tuned for updates as this story progresses, and the implications for Vertical Harvest, its partners, and the wider Westbrook community become clearer.
