MedMen co-founders sue new partners

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.” 

Read the whole MJBiz story.