The situation in Pasadena dates back to 2019.
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
