MedMen wants Pasadena process stopped until the company is reinstated in the city’s cannabis selection procedures
Officials with a cannabis dispensary company removed from the city’s selection process have filed a lawsuit against the city seeking injunctive relief.
MedMen, which applied to do business in Pasadena as MME Pasadena, is asking a judge to stop the city’s cannabis approval process until the company is reinstated.
Pasadena Now first reported in August that MME Pasadena was removed from the city’s cannabis process after an investigation revealed a material change in ownership and company management.
Qualities specific to both management and ownership were evaluated and directly impacted the scoring and ranking of permittees as part of the selection process.
“MME Pasadena will suffer irreparable harm because other cannabis license holders within the City will be given a head start in developing and capturing valuable market share for the sale of adult-use cannabis within the City during the pendency of this writ petition,” according to the lawsuit.
According to a letter to MedMen from City Manager Steve Mermell, nine-out-of 10 applicants listed as owners on MedMen’s applications in the city’s process have changed since the company was chosen to move forward in the process, including Adam Bierman, who served as the company’s chief executive officer, Chief Operating Officer Ben Cook and MedMen President Andrew Modlin.
According to the city’s process, “A change of ownership and/or management is not allowed and is considered material where it constitutes a change of control.”
The review also found that Gotham Green acquired 31.9 percent of the company’s voting power and 575,434,313 shares, which makes it the second-largest shareholder in the company.
MedMen signed a $659,833.00 10-year lease in District 6 and has already spent $700,000 on licensing, professional fees, costs, and lease-related payments, according to the lawsuit.