WEST HOLLYWOOD, Calif. – Entertainment trade publication Variety last week called cannabis retailer MedMen co-founder Andrew Modlin a “marijuana magnet,” when they announced his purchase of an $11 million dollar mansion, located in the vaunted and exclusive Bird Streets, located in the Hollywood Hills.
According to Variety, Modlin also retains his former West Hollywood residence, valued at $3.9 million. MedMen’s flagship original location also is located in West Hollywood.
The purchase comes amid a year of legal scrutiny for MedMen, Modlin, and his co-founding partner Adam Bierman.
In January, original investors in the company filed suit against MedMen in Los Angeles County Superior Court. The plaintiffs claimed that Modlin and Bierman used “a complex web of interconnected subsidiary entities, virtually all of which are directly managed, directed, controlled and owned by [CEO Adam] Bierman and [President Andrew] Modlin, and all of which always pursue the best interests of Bierman and Modlin, rather than the best interests of any stakeholder or entity.” The plaintiffs have since withdrawn their petition with the court.
At the time, MedMen’s former senior vice president of corporate communications Daniel Yi refuted the charges made by plaintiffs in a statement that was accompanied by a rebuttal of specific claims.
Former employees of MedMen also filed a class action suit against the company in December 2018, alleging labor law violations. Labor law firm Blumenthal, Nordrehaug, Bhowmik, and DeBlouw’s blog noted that since January, nearly 100 employees and three members of the executive team have departed the company.
Former Chief Financial Officer James Parker in January also filed a wrongful termination suit against MedMen, which is currently pending. The complaint alleges that Parker was exposed to a work environment that included several labor law violations, including sexual, misogynistic, and racist language, as well as “personal humiliation.”
MedMen has since vigorously denied claims made by Parker and filed a counter suit. The charges, however, have caused some concern with City Council members in Pasadena, California, over MedMen’s already approved application to open a retail location in the city.
In response to the controversy in mid-June the company told PasadenaNow.com, “In March, MedMen filed a response to Parker’s suit and a cross-complaint. MedMen’s response denies all substantive claims in Parker’s lawsuit. The cross-complaint alleges among other things breach of contract, breach of fiduciary duty, and misappropriation of trade secrets by Parker.”
In any case, Modlin may have been unable to resist the discounted property, which Variety.com said is in the same neighborhood as residences owned by celebrities like Leonardo DiCaprio, Keanu Reeves, and next door to the estate of late comedian Rodney Dangerfield. Variety detailed the home’s interior and said, “the resort-like master suite, sports dual showroom closets and disappearing walls of glass opening to the pool/spa combo and adjoining patio. As for the semi-subterranean lower level, it contains a spacious lounge, gym, wine closet, and a media room with projector.”
The home had been for sale since January and the price reduced twice before Modlin’s purchase, The luxury home market has slowed in some major U.S. markets, according to industry reports, leaving a glut of mansions in Los Angeles, luxury condos in Miami, and penthouses in New York.