California-based cannabis giant MedMen has filed a lawsuit against the City of Pasadena over its decision to disqualify the company from receiving a conditional use permit.
As CalMarijuanaPolicy noted in September, high turnover and instability appear to have been driving motivators for the city in its decision to shut MedMen out. Pasadena Now previously obtained a document from the city citing “a material change in ownership and/or management” at the company.
In its lawsuit, MedMed called the city’s decision “arbitrary, capricious and unlawful.”
From Marijuana Business Daily:
MedMen, headquartered in Los Angeles, claims in the lawsuit that, after the original scoring, it entered into a “non-terminable, 10-year lease” for roughly $6.5 million and had already spent $700,000 on various expenses related to the licensing process.
The company further argued that turnover at the executive level doesn’t constitute a change in ownership because the company itself still owns all the assets related to the Pasadena enterprise, according to the Star-News.
Pasadena is facing unrelated lawsuits from two other cannabis businesses over its permitting process.
Read more here.