California-based MedMen filed suit against the city of Pasadena, claiming that its application for a cannabis retail location was improperly disqualified.
According to the Pasadena Star-News, MedMen called the city’s decision “arbitrary, capricious and unlawful” and chalked up the ruling as sour grapes from a competitor, Sweet Flower.
MedMen, headquartered in Los Angeles, claims in the lawsuit that, after the original scoring, it entered into a “non-terminable, 10-year lease” for roughly $6.5 million and had already spent $700,000 on various expenses related to the licensing process.
The company further argued that turnover at the executive level doesn’t constitute a change in ownership because the company itself still owns all the assets related to the Pasadena enterprise, according to the Star-News.
MedMen is also not alone in suing Pasadena over its marijuana licensing process; two others from the pool of six original license winners also have filed suit against the city.