A lawsuit filed against MedMen
Enterprises Inc. (OTC: MMNFF) that argued CEO
Adam Bierman and President Andrew Modlin made decisions in their
own personal interest rather than that of shareholders has been
dismissed, the cannabis company said Thursday.
Plaintiffs Brent Cox, Omar Mangalji and MMMG-MC
voluntarily dismissed the case, which was filed in Los Angeles
Superior Court, MedMen said. MMMG-MC is an affiliate of
Inception Companies, a cannabis real estate investment
The dismissed case eliminates a suit that MedMen,
its related brands and co-founders Adam Bierman and Andrew Modlin
considered "frivolous" from its onset, the company said.
The plaintiffs were early investors who had
earned millions and who âsought to take further advantage of
their position as insidersâ by filing suit alleging wrongdoing tied
to what MedMen said was a "common business decision" to lock-up
certain MedMen shares held by MMMG.
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Inception Says It's Seeking Arbitration
The Inception Companies said in a Tuesday press
release that its affiliate MMG-MC has filed a demand for
arbitration in lieu of a lawsuit.
Since the initial lawsuit was filed alleging
mismanagement, "the company's losses have continued, several
executives have resigned, debt is accumulating and valuable real
estate assets have been sold," attorney Daniel Petrocelli said in a
"Meanwhile, MedMen's procedural filings delayed
the case until November. That delay is untenable given our clients'
views that MedMen's financial condition is rapidly deteriorating.
In order to obtain prompt relief, they have decided to file an
MedMen said that Inception opposed arbitration
for months, but has now reversed course.
"The voluntary dismissal serves as an
acknowledgment that Cox and Mangalji should not have filed the
lawsuit in the first place. By opposing MedMenâs earlier efforts to
compel arbitration, Cox and Mangalji delayed final resolution of
the dispute and wasted significant shareholder resources by
requiring MedMen and its affiliates to litigate the matter," the
Culver City, California-based company said.
New York Cannabis Trade
Group Kicks Out MedMen After Former CFO Alleges Racism,
Large Shareholders Sue MedMen, Allege
'Conflicted Corporate Structuring'
Photo courtesy of MedMen.
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