Early yesterday morning in the Superior Court of Los Angeles, California, The Inception Companies founders Brent Cox and Omar Mangalji (through an affiliated entity – MMMG-MC, Inc. – that holds a significant stake in MedMen’s management company MMMG, LLC) filed a complaint against Adam Bierman; Andrew Modlin and various MedMen Enterprises entities for alleged breaches of fiduciary duty.
Cox stated, “We have a long history with MedMen – as one of the largest and original shareholders of the company. Sadly, we are backed into a corner here and compelled to take action on behalf of all stakeholders of the company.” Cox is a former board member of MedMen, serving in that role from March 2016 to March 2018 and Founder of The Inception Companies.
Omar Mangalji, Partner and Founder of The Inception Companies added, “Simply put, MedMen is a publicly traded company that is withholding its shares from its shareholders. Management is using conflicted corporate structuring in breach of its fiduciary duty to its shareholders.”
He continued to say, “MedMen touts itself as a torchbearer of best practices and even claims in their advertising campaigns that they are ‘Mainstreaming Marijuana.’ If that is the case then they need to adopt mainstream corporate governance practices. This industry is exciting and rife with opportunity, but unless we engender a safe and accountable environment for individuals and institutions to invest their capital, the explosive growth will be stifled. Given the industry’s storied history and its varied stages of legality in different markets, it is doubly important that our industry be well above board in all of its corporate practices.”
Read paperwork here