Just in case you thought it was safe to stop thinking about the conflict between MedMenĀ (CSE:MMEN) (OTCQX:MMNFF) and Ascend Wellness Holdings (OTCQX:AAWH), a new twist pulls you right back in.Ā
The oftenĀ vitriolic court battle between two cannabis companies over aĀ licensing deal gone badĀ and alleged political misconduct seems to have taken a anotherĀ turn, reportedĀ amNY.
Lawyers with Ascend Wellness said thatĀ MedMen has indicated it will withdraw its allegations that Ascend executives put political pressure on Gov. Kathy Hochulās administration to approve a medical marijuana license transfer between the two companies, the original source of the conflict.
Ascend, which isĀ hoping to set up operations in New York, filed a lawsuit in state court in January against MedMenĀ that claimed the defendant had not fulfilled a contract to hand over $73 million worth of in-state licensed operations.
In response, MedMen filed a counterclaim accusing Ascend of leaning on Hochulās administration and the Office of Cannabis Management to approve the license transfer between the two companies.
After Ascendās counsel provided evidence that conflicted with MedMenās assertions last week, Mylan Denerstein, a lawyer representing Ascend, said that counsel for MedMen has agreed to withdraw that allegation.
āLike any house of cards, MedMenās claims collapsed when exposed to the slightest scrutiny. Ascend will continue to correct the record and looks forward to entering New Yorkās cannabis market once its rights are vindicated in court,ā Denerstein said in a statement to amNY.
MedMen had accused Ascendās president Andrew Brown of attending a fundraiser for Hochul on Dec. 8, and its CEO Abner Kurtin of meeting with the governor’s secretary that same week toĀ pressure on the state to push the deal through.
Ascend responded last week in its motion to dismiss the counter suit that MedMenās narrative about political pressure is made up. Ascend argued that MedMenās claims were an attempt to kill the deal after it got a case of āsellerās remorseā and hoped āto strike a better deal with a new buyer.ā
As evidence to its counterclaim, Ascend submitted court logs and a hotel receipt that show Brown providing legal counsel and staying at a hotel in Albany on the day that MedMen accused him of attending the Manhattan fundraiser.Ā
A spokesperson from Gov. Hochulās administration also called MedMenās accusations false.Ā
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