Marijuana MSO MedMen successfully fends off $60 million Arizona lawsuit

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Marijuana multistate operator MedMen Enterprises said it prevailed in a $60 million breach-of-contract lawsuit involving its 2018 purchase of a vertically integrated medical cannabis operation in Arizona.

Scottsdale, Arizona-based Whitestar Solutions sued MedMen in March 2020 in Maricopa County Superior Court alleging breach of contract and fraudulent inducement in connection with the transaction, according to a news release.

Whitestar wanted the 2018 deal to be rescinded or to receive $60 million in alleged damages.

The MMJ license has since enabled Los Angeles-based MedMen to gain entry into the state’s lucrative recreational marijuana industry.

MedMen maintained that the lawsuit and claims were baseless, and the judge agreed on all counts, canceling a scheduled June jury trial, according to MedMen’s release.

The judge further ruled that MedMen is entitled to submit an application to recover attorney fees and costs from Whitestar.

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“We’ve always maintained MedMen’s innocence in this matter, and are pleased to be formally exonerated,” MedMen CEO Ed Record said in a statement.

“This is yet another baseless lawsuit MedMen has been party to in recent years, and we remain committed to vigorously defending the company and recovering attorneys’ fees when possible.”