Adam Jackson
MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) settled a lawsuit alleging it failed to pay more than $877,000 in rent and fees for a Pasadena property, as the company delays it annual financial results.
The settlement resolves claims in a Los Angeles County Superior Court brought by landlords Sara Young and Dustin Nelson, Law360 first reported. According to the agreement, MedMen and its affiliates will make payments over time for a building in Pasadena, with the court retaining the right to enforce these payments.
MedMen’s situation in Pasadena began with a lease agreement in September 2019 through its subsidiary MME Pasadena Retail Inc. The city later disqualified MME Pasadena from proceeding with a cannabis retailer permit due to a change of control, leading to a rent deferral request from the defendants.
The lawsuit alleged that MedMen and its affiliates failed to take possession of the Pasadena facility and did not make required payments. In response, MedMen contended that the $250,000 termination fee was unreasonable and that all obligations under the lease had been met, except where performance was excused.
The resolution comes at a time when MedMen is also grappling with delayed financial reporting. The company reported that it is behind on its 2023 annual financial statements and related documents.
The delay has led to a management cease trade order issued by the British Columbia Securities Commission, prohibiting MedMen’s CEO and CFO from trading the company’s stock until the necessary documents are filed.
MedMen expects to complete these filings by Dec. 13.
