Cura Cannabis, Oregon’s biggest marijuana company, quietly settled a lawsuit last week over social media posts that highlighted rape allegations against the company’s executive chairman.

Portland-based Cura sued rival Bloom Farms in January, alleging that Bloom had used anonymous social media posts to highlight a past rape accusation against Cura’s executive chairman, Nitin Khanna. The Portland company alleged that Bloom was using anonymous posts to undercut Cura’s business.

A court filing in Alameda County, California, shows the lawsuit was settled, but neither company reported terms of the agreement.

Cura did not respond to a request for comment. Bloom Farms, based in California, said in a written statement that it “has settled Cura’s lawsuit in full for an undisclosed sum” and declined further comment.

Khanna had been Cura’s CEO until last year, when social media posts urged customers to avoid Cura’s Select brand of legal marijuana because of Khanna’s alleged behavior. A woman had accused Khanna of raping her in 2012, early on the morning of his own wedding.

Khanna denied the accusations and Oregon prosecutors declined to prosecute the case. They said DNA evidence showed he and the woman had indeed had sexual conduct but the prosecutors concluded they could not prove it was not consensual.

The woman who made the accusations brought a civil suit against Khanna, which he settled in 2014. The parties did not disclose terms of that agreement, either.

Privately held Cura says it has more than 500 employees and had $117 million in revenue last year. The Portland company is in the process of selling its Select brand of recreational marijuana to a Massachusetts company called Curaleaf.

The all-stock deal was valued at nearly $950 million when the companies announced it May 1 and was briefly worth more than $1 billion.

Curaleaf’s share price has plunged by nearly 40% in the intervening months, however, amid uncertainty over the regulatory environment around marijuana.

The decline in Curaleaf’s share price produced a corresponding decrease in the value of its deal for the Portland company, which has lost more than $360 million. Cura’s current CEO, Cameron Forni, said last month the companies are waiting for federal authorities to complete an antitrust review so they can close the deal.

-- Mike Rogoway | twitter: @rogoway | 503-294-7699