Only days after The Parent Co. said it was purchasing California-based Coastal Holding Co., former MedMen executives Andrew Bierman and Andrew Modlin withdrew multiple state and federal lawsuits they had filed in an attempt to halt the sale.
The dismissals of the suits bring to a quick end a legal fight that had the potential to completely upend the acquisition. They also likely clear the path for a smooth sale closing.
Bierman and Modlin, who are partial owners of Coastal, first filed suit against five other owners of the company in Orange County Superior Court on Sept. 15, claiming that their rights as minority owners were being violated and that they did not consent to a sale of Coastal.
When the defendants objected to the state court’s jurisdiction, the case was moved to federal court, and multiple versions of the lawsuit wound up being filed in U.S. District Court in the central district of California.
Business leaders need reliable industry data and in-depth analysis to make smart investments and informed decisions in these uncertain economic times.
Get your 2023 MJBiz Factbook now!
- 200+ pages and 50 charts with key data points
- State-by-state guide to regulations, taxes & opportunities
- Segmented research reports for the marijuana + hemp industries
- Accurate financial forecasts + investment trends
Stay ahead of the curve and avoid costly missteps in the rapidly evolving cannabis industry.
But all of those were dismissed by Oct. 7, according to court records, three days after San Jose, California-based The Parent Co. announced it was purchasing Coastal for $56.2 million.
Another, parallel lawsuit by Bierman and Modlin, filed in Santa Barbara County Superior Court on Sept. 22, was also quickly removed to federal court and likewise dismissed.
Court records didn’t provide any reason for why the cases were withdrawn.
An MJBizDaily message left for the attorney for Bierman and Modlin seeking comment was not returned, and the defendants’ attorney could not be reached for comment.
– John Schroyer