(This story has been updated to include MedMen’s settlement of a lawsuit.)
The co-founders of California-based multistate marijuana operator MedMen are completely out of the company, having relinquished their roles on the board of directors.
According to a news release, former CEO Adam Bierman stepped down from his seat on the board, and ex-president Andrew Modlin left his post as an “observer” to the board.
In addition, Modlin’s employment agreement expired May 18, the release noted.
Their departures from the MedMen board follows the dual resignations in January of Bierman and Modlin as CEO and president, respectively.
Until now, however, they had kept a semblance of roles with the Los Angeles company via the board.
The company previously stated that Modlin also pledged to relinquish his super voting shares in MedMen by December.
In the same news release, MedMen announced it has settled a lawsuit with former investors Brent Cox and Omar Mangalji, who filed suit in January 2019, claiming that Bierman and Modlin were enriching themselves at the expense of shareholders.
The lawsuit was later moved into arbitration, and now a settlement has been reached.
“MedMen issued 1.5 million Class B subordinate voting shares to (the plaintiffs) as a part of the overall 24 million share settlement,” according to the news release.
“Although MedMen denies any wrongdoing, the company believes its contribution to the settlement is in the best interest of its shareholders. The parties are in the process of dismissing the arbitration.”
The January resignations of Bierman and Modlin have not kept trouble from following MedMen.
In April, a MedMen creditor said it was seeking to seize Bierman and Modlin’s personal homes as partial repayment for a debt.