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Following recent victories, MedMen faces some legal setbacks

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Following recent victories, MedMen faces some legal setbacks

Bethan Rose Jenkins, Cannabis News Writer/Editorial

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A job listing was posted back in November by one of California’s biggest cannabis retailers, MedMen.

The role for a crisis management planning manager seems somewhat prophetic now, what with the company enduring numerous setbacks in the months that followed.

Based on details of the job posting, the aim of the cannabis job role was to assist MedMen “employees and business units in building, sustaining and improving MedMen’s capability to prepare for, mitigate against, respond to and recover from all hazards.”

Slammed with three lawsuits that could cost the cannabis retailer millions of dollars, MedMen has been knocked down once again after the company’s membership with the New York Medical Cannabis Industry Association was recently revoked.

Why? Due to allegations of lawsuits made against the vertically-integrated company.

Concerns raised regarding MedMen’s line of direction and leadership

Just last month, MedMen’s former chief financial officer filed a breach-of-contract lawsuit

The lawsuit filed by the company’s former CFO James Parker points the finger at CEO Adam Bierman and President Andrew Modlin, both of whom were greedily accused of allocating “millions of company dollars” to fund personal luxuries including private jets.

According to Parker, Bierman is accused of using homophobic and racial slurs. Adding fuel to the fire, MedMen now faces the possibility of losing its West Hollywood-based flagship store.

Prior to the bad news that has plagued the company recently, MedMen was previously making news headlines for all of the right reasons. From going public in Canada to carrying out numerous acquisitions that would bring the U.S. cannabis company plenty of fortune, MedMen was doing very well indeed.

MedMen CEO denies allegations written in statement

http://www.crainsnewyork.com/article/20170201/HEALTH_CARE/170209989/queens-cannabis-company-bloomfield-industries-to-move-upstate-after-being-acquired-following-a-period-of-poor-management-and-complaints-from-customers

(Pictured) MedMen co-founder and CEO, Adam Bierman

Bierman has disputed all accusations written in the statement against the MedMen CEO.

“Mr. Parker’s inflammatory allegations are a transparent attempt to gain attention for his meritless lawsuit. His personal attacks on my character are completely antithetical to my core values,” Bierman declared. “I am married to a Latina who immigrated to this country at an early age and has been the rock in my life for the last 15 years.”

“My business partner for more than a decade and MedMen co-founder, Andrew Modlin, is an openly gay man who inspires me every day with his vision for our company and his commitment to our mission of legalizing cannabis and helping the world discover its remarkable benefits,” he added.

Notwithstanding, the company is sure to bounce back, with cannabis industry analysts optimistic that MedMen won’t succumb to the pressure of negative news headlines from a financial aspect.

A statement published on January 17 revealed how MedMen expects an increase in its revenue for the fiscal second quarter to total around $30 million. This would represent a 40 percent gain over the first quarter.

MedMen board of directors issues statement supporting executives

MedMen’s board of directors issued a statement backing the two executives in regards to the allegations made by Mr. Parker.

The statement describes the lawsuit as “baseless”, stating that the “Board remains confident that MedMen will prevail.”

“Adam Bierman is a champion for the cannabis industry as well as diversity and inclusion in the workplace,” read the statement. “The Board of MedMen has full confidence in the leadership and ability of Adam Bierman and Andrew Modlin to build the world’s finest cannabis retailer.”

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Following recent victories, MedMen faces some legal setbacks