Business
MedMen co-founders sue new partners
By
Alex Halperin
Oct 4, 2021
Oct 4, 2021
Share:

MedMen co-founders Adam Bierman and Andrew Modlin are suing their partners at California retailer Coastal, accusing them of trying to sell the company in a “fire sale.”
On Monday, The Parent Company said it had agreed to buy Coastal for $56.2M. Bierman and Modlin have filed three lawsuits against five Coastal co-owners over the deal.
MJBiz, Law360
- In a response defendants said Modlin and Bier had arranged the deal they’re now suing over.
- In filings, the plaintiffs revealed previously undisclosed stakes in Coastal, which attorney Hilary Bricken said could run afoul of California license requirements. (Their lawyer didn’t respond to MJBiz‘s request for comment.)
- The defendants include Coastal CEO Julian Michalowski and Joshua Ginsberg, who co-founded Colorado-based Native Roots.
- It’s not clear whether the lawsuits could disrupt the sale.
- Modlin and Bier founded MedMen and led it during its rapid ascent and collapse, from which it is attempting to dig out.
Politico - “This is a ‘fuck you’ lawsuit,” said San Francisco lawyer Katy Young. “These guys know their way around lawsuits, and they know how to make moves. Sort of, ‘Sue first, and ask questions later.’ It’s not surprising at all, given their previous business backgrounds.”
Share:
Already a Pro member? Login here
pro
Calif. lab execs allege rampant potency fraud
California cannabis retailers say only two things move product: high potency and low prices.With prices finding new lows and the state market in crisis, retailers are hungry for products with ever higher THC levels. This dynamic has led to a...
pro
Black-owned businesses feel the squeeze
In June, the chair of Oakland’s Cannabis Regulatory Commission sounded the alarm: California’s social equity businesses couldn’t survive in the current business climate. Amid heavy taxes and competition with the illegal market, Chaney Turner told lawmakers in Sacramento, “Only large...
pro
Dutchie’s payments play faces headwinds
Correction: This story originally misstated Lipson's title and the nature of Dutchie's e-commerce offering.Cannatech unicorn Dutchie has a new payments offering designed to secure its place at the center of dispensary tech stacks, and help it reach profitability. For that...