Litigious Investors Dismiss Faulty Court Action Against MedMen
LOS ANGELES, June 06, 2019–(BUSINESS WIRE)–MedMen Enterprises Inc. (“MedMen” or the “Company”) (CSE: MMEN) (OTCQX: MMNFF) announced today that Brent Cox, Omar Mangalji, and the Inception Companies, through their affiliate, MMMG-MC, voluntarily dismissed their frivolous lawsuit against MedMen and its related companies, as well as its co-founders Adam Bierman and Andrew Modlin yesterday, in what can only be described as a personal admission that their case was improper. The request for dismissal also follows the Los Angeles Superior Court’s order in January 2019 that stated such claims were not likely to succeed on the merits.
After earning millions of dollars as early investors in MMMG LLC, Cox and Mangalji sought to take further advantage of their position as insiders by filing suit against MedMen, Bierman, and Modlin alleging wrongdoing in connection with a common business decision to lock-up certain shares of MedMen held by MMMG. After the suit was filed, MedMen immediately filed a motion to compel the matter to arbitration as required under the parties’ contractual agreements. Despite filing an opposition to the demand for arbitration and insisting for months that their claims had to be litigated in Los Angeles Superior Court, Cox and Mangalji voluntarily dismissed their court action and agreed to arbitrate their dispute. The voluntary dismissal serves as an acknowledgment that Cox and Mangalji should not have filed the lawsuit in the first place. By opposing MedMen’s earlier efforts to compel arbitration, Cox and Mangalji delayed final resolution of the dispute and wasted significant shareholder resources by requiring MedMen and its affiliates to litigate the matter.
This is not the first time the case has been determined to lack merit. The request for dismissal follows a Los Angeles Superior Court judge’s ruling in January 2019 that Cox and Mangalji’s improper claims were not likely to succeed on the merits in this case. The Judge made the ruling, after reviewing the evidence and Cox and Mangalji’s claims. Despite the Court’s clear finding against Cox and Mangalji, they continued to pursue their meritless claims in open Court, until yesterday, when they finally agreed to abide by their obligations under their contracts.
Not only is this behavior extremely disappointing as it places Cox and Mangalji’s personal issues with the Company ahead of the interests of the shareholders, but it reeks of an attempt to unfairly compete by using the public court system to gain publicity for their own company.
Immediately after filing the faulty lawsuit, Mangalji, a reported “playboy” who uses the alias “Ronnie Bacardi,” appeared on various news media outlets touting his baseless claims and plugging his own competing company. Having used the initial lawsuit to promote their own company, Cox and Mangalji now seek to retreat to the anonymity of a confidential arbitration to avoid publicly airing their own wrongdoings.
MedMen looks forward to the opportunity to expeditiously litigate the frivolous and unfounded claims against the Company and its co-founders brought by Cox and Mangalji, who have already reaped millions of dollars from their investment. Not only does MedMen expect to defeat the wholly unmeritorious claims, it also intends to seek substantial monetary and punitive damages from Cox and Mangalji due to their wrongful acts.
MedMen is a cannabis retailer with operations across the U.S. and flagship stores in Los Angeles, Las Vegas and New York. MedMen’s mission is to provide an unparalleled experience that invites the world to discover the remarkable benefits of cannabis because a world where cannabis is legal and regulated is a safer, healthier and happier world. Learn more at www.medmen.com.
Get ahead of the crowd by signing up for 420 Investor when it becomes available again. It’s the largest & most comprehensive premium service for cannabis investors since 2013.