MedMen CEO says Oregon, Colorado are 'horrible markets' to be in” from CNBC.
According to a report in the New York Daily News, embattled retail store MedMen (OTCMKTS:MMNFF) is no longer a part of the New York Medical Cannabis Industry Association following allegations of financial impropriety and accusations of sexism and bigotry among top executives.
According to a recent lawsuit filed in Los Angeles Supreme Court by former chief financial officer James Parker, company executives, led by CEO Adam Bierman are alleged to have committed fraud, dipping into to company finances to personally enrich themselves at the expense of shareholders.
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The suit also alleged the use of what the Daily News described as “homophobic and racial slurs. In one instance, Parker claimed that Bierman called a Los Angeles city councilman a “midget negro.”
“The [New York Medical Cannabis Industry Association] has a zero-tolerance discrimination policy for any of our members who engage in this type of despicable behavior,” wrote representatives for the group in a letter sent to Gov. Andrew Cuomo and the top members of New York’s legislative body, state Senate majority leader Andrea Stewart-Cousins and Assembly speaker Carl Heastie.
MedMen, which owns and operates a dispensary on Fifth Ave. in the city is no stranger to controversy, having now been a party to several lawsuits in recent months, including by former employees claiming the company refused to pay them monies owed.
The Daily News reports that MedMen was initially asked to resign from the association, but refused to do so, claiming that the allegations in question are frivolous and that they have already been addressed by the company. Following their refusal to resign, MedMen was forcibly removed from the group.
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“We still support the org (NYMCIA) and its cause,” said MedMen spokesman Daniel Yi according to the Daily News. “We have already addressed these allegations publicly. They are patently false. They were made by a disgruntled employee and are untrue.”
The company still has plans to open a new dispensary in New York City’s famed Meatpacking district, a move that could be beneficial as Cuomo pushes for the legalization of recreational cannabis in the state.