Recent events prompt arbitration filing
LOS ANGELES–(BUSINESS WIRE)–In the wake of MedMen’s financial statements released last week, The
Inception Companies announced today that its affiliated entity, MMMG-MC,
has filed a demand for arbitration in place of its pending lawsuit
alleging breaches of fiduciary duty by MedMen founders Adam Bierman and
Andrew Modlin.
Daniel Petrocelli, attorney for Inception founders Brent Cox and Omar
Mangalji, said the recent reports and news regarding MedMen prompted a
decision to seek a speedier resolution through arbitration rather than
the courts.
“Since our clients filed their lawsuit alleging mismanagement of MedMen,
the company’s losses have continued, several executives have resigned,
debt is accumulating and valuable real estate assets have been sold,’’
Petrocelli said. “Meanwhile, MedMen’s procedural filings delayed the
case until November. That delay is untenable given our clients’ views
that MedMen’s financial condition is rapidly deteriorating. In order to
obtain prompt relief, they have decided to file an expedited
arbitration.’’
Cox and Mangalji, through MMMG-MC, sued Bierman and Modlin earlier this
year after MedMen unilaterally prohibited MMMG shareholders from having
their shares distributed to them to trade, while allowing other
shareholders to do so.
The lawsuit stated that “Not only did defendants Adam Bierman and Andrew
Modlin fail in their obligation to operate in good faith and in the best
interests of MMMG, but they treated MMMG and MedMen as their exclusive
property and personal piggybank. They used their nearly complete control
over the MedMen enterprise to enrich themselves at the expense of the
Plaintiffs and the other shareholders of MMMG.’’
Contacts
Media Contact:
David Satterfield
G.F.BUNTING+CO
[email protected]
408-802-6767
Russ Stanton
G.F.BUNTING+CO
[email protected]
213-241-9865
