Business

NY Gov resists MedMen subpoena

By Alex Halperin
Feb 8, 2022
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In the latest development in the legal battle between MSOs MedMen and Ascend Wellness Holdings, the office of New York Gov. Kathy Hochul (D) is reportedly seeking to narrow the scope of a subpoena sought by MedMen.
Albany Times-Union 

MedMen has moved to subpoena Hochul’s office and campaign.

  • It alleges Hochul’s government was improperly influenced to approve a previously-announced deal for Ascend to acquire a large majority of MedMen’s New York business for $73M, a low amount considering the New York market’s potential. 
  • State regulators approved Ascend’s purchase in December, before it expired on December 31. 
  • Ascend gave Hochul’s campaign $15,000 in October.
  • Hochul’s office says it will respond to the subpoena, but that it is overly broad and should be narrowed.  

The not-especially 420-friendly N.Y. Post called the case a test for Hochul’s “new era of transparency.”

  • It could also have ramifications for New York’s not yet open REC industry.