A lawsuit has alleged that there was a “shocking amount of turnover” at a startup funded by JD Vance, a Republican senator from Ohio and former vice presidential running mate of Donald Trump. The company, AppHarvest, was created to help rural families by building a 2.8 million square foot greenhouse in Morehead, Kentucky to grow fruits and vegetables. Despite Vance’s investment of $150,000 in the company and his position on the board of directors, there is no suggestion that he is personally to blame for the complaints made by former employees. AppHarvest filed for bankruptcy in 2023 with $341 million in debt.
Employees of AppHarvest complained that they were poorly trained, leading to damaging crops and wastage of fruits and vegetables. The lawsuit alleged that the damaged crops were hidden before visits by news media and investors. The company settled a claim for $4.85 million in March 2024, which was approved by a federal judge. Former employees described a culture of exhaustion and disillusionment within the company, with a high level of turnover as a result of increased productivity requirements. The investors claimed they were misled about worker training and the company’s production standards, leading to losses in their investments.
An investor lawsuit filed in New York federal court detailed the poor quality of produce and waste at the Morehead facility. Former employees reported maintenance issues and lack of training, leading to damaged tomatoes and other imperfections in the crops. The investors, including lead plaintiff Alan Narzissenfeld, alleged that they were not informed about the staffing retention issues and inadequate training before investing in the company. The Morehead greenhouse was built over sixty-three acres and was supposed to create jobs in rural America, aligning with Vance’s political platform of supporting Appalachia and rural communities.
AppHarvest was founded in 2018 and focused on growing fruits and vegetables indoors using Controlled Environment Agriculture. The company went public in 2021, but soon faced financial difficulties and ultimately filed for bankruptcy with a significant amount of debt. Former employees reported high turnover rates and dissatisfaction with the working conditions at the Morehead facility, leading to damaged crops and wastage of produce. Investors in the company claimed that they were misled about the level of training and quality control within the company, resulting in financial losses for many.
Despite JD Vance’s investment and position on the board of directors at AppHarvest, there is no indication that he is personally responsible for the issues faced by the company. The lawsuit detailed the experiences of former employees who reported a challenging work environment with high turnover rates and poor training. AppHarvest settled the claim for $4.85 million, acknowledging the allegations made by investors and former employees about the quality of produce and the working conditions at the Morehead facility. The company’s bankruptcy filing in 2023 marked the end of its efforts to create jobs in rural America through indoor agriculture.
