Cannabis MSO MedMen tops Whitestar Solutions in fraud case

Arizona’s Court of Appeals ruled in favor of MedMen Enterprises in a breach-of-contract lawsuit, the cannabis multistate operator’s second victory over Whitestar Solutions.

MedMen, headquartered in Los Angeles, initially won the case in May 2022.

Scottsdale, Arizona-based Whitestar filed the $60 million lawsuit in 2020, alleging breach-of-contract and fraudulent inducement in connection with its 2018 purchase of EBA Holdings, which was doing business as MedMen Scottsdale.

In the initial case, filed in Maricopa County Superior Court, MedMen said the suit and claims were baseless.

The judge agreed with MedMen and canceled a scheduled jury trial.

Whitestar later appealed, but this week an appeals judge “said he would not reverse the judgment,” according to Green Market Report.