After the owners of a California-based store allowed them to return to the cannabis industry, the co-founders of MedMen Enterprises, Bierman and Modlin, sued their new partners and accused them of trying to sell off the company in an apparent ‘liquidation sale’.
MedMen executives fired last year filed three lawsuits in court against five co-owners of Coastal Holding Co. for their intentions to sell the company in Santa Barbara, California for $ 56.2 million.
The main company, located in San José, California, explained in a press release that the sale is “dependent on the success of the transfer of Coastal’s cannabis licenses.”
It is still not clear if the lawsuits by Bierman and Modlin will contest the established agreement because they indicate that, as investors and partial owners of Coastal, they have the right to approve the sale, but they have given denials.
The other Coastal owners commented in a court filing that Bierman, alongside Modlin, had made the same sale that they now want to prevent. “It was the plaintiff, and not the defendants, who recommended, found, and negotiated the sale of Coastal for $ 56.2 million,” according to the court filing of the other owners of the company.
Experts on the subject argued that Bierman and Modlin could have caused a bigger problem for them due to the legal battle.