Cannabis Company MedMen Sued Over Planned Flagship Store Sales

MedMen Opportunity Fund II LP, which operates cannabis dispensaries nationwide, was hit with a lawsuit in Delaware over an alleged scheme by its principal owners to sell licenses for the company’s flagship Los Angeles locations on terms that squeeze out minority investors.

The principals “have surreptitiously agreed to a transaction involving the sale of the lucrative licenses that threatens to severely diminish or eliminate” the value of MMOF, an investment affiliate of Canada-based MedMen Enterprises Inc., which runs 33 stores in nine U.S. states, according to the complaint.

Despite their “legal and contractual” obligation to open the fund’s books to ...