Judge reaffirms that marijuana firm MedMen must pay ex-CFO’s legal fees

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A California judge again ordered marijuana multistate operator MedMen to pay the company’s former chief financial officer at least $500,000 to cover his legal fees in an ongoing lawsuit over whether the executive was wrongly terminated.

According to Law360, Judge Mark Young of the Los Angeles County Superior Court issued the order after reaffirming that former MedMen CFO James Parker’s employment contract mandates that MedMen pay his legal fees in the event of a legal dispute.

The judge had ruled in Parker’s favor last July, but MedMen then argued that the initial order didn’t require that the Los Angeles-based MSO make immediate payment.

Parker’s legal tab could grow by another $112,000 if the judge decides MedMen is on the hook for other fees related to the case.

The legal battle dates to early 2019, when Parker filed suit against the company, alleging breach of contract and other corporate misdeeds.

MedMen countersued Parker, claiming he was removed from his post after “shoddy performance,” Law360 reported.

Parker’s allegations in the case – including wasteful spending by company executives and a toxic work environment – likely contributed to the eventual ouster of MedMen founder and CEO Adam Bierman in January 2020, along with former MedMen President Andrew Modlin.

MedMen trades on the Canadian Securities Exchange as MMEN and on the U.S. over-the-counter markets as MMNFF.