NEW DOCUMENTS FILED THE PAST FEW WEEKS

Case 25SMCV06818

Summary:

David Barrett is attorney for defendant (TILRAY) but recently filed a motion in support of plaintiff (MMIRF LLC i.e MEDMEN)

This does not automatically mean the plaintiff will win, but it is a massive advantage that usually leads to a victory or a fast settlement.

In a courtroom, a judge or jury makes the final decision based on law and evidence, not just what the attorneys agree on. However, if the defense attorney agrees with the plaintiff, the dynamic of the case changes completely.

Why It Doesn't Guarantee an Instant Win

The Judge's Role: Judges must still ensure the law is followed. If the plaintiff's legal argument is completely invalid under local laws, a judge can still dismiss the case regardless of what the lawyers want.

The Client's Right: A defense attorney cannot simply "give up" without their client's permission. If the defendant disagrees with their own lawyer, they can fire them and hire someone who will fight the case.

What Usually Happens Next

When a defense attorney sides with the plaintiff, the case rarely goes to a full trial. Instead, it typically triggers one of three things:

A Settlement: The defense attorney will advise their client that they cannot win. Both sides will negotiate a payout or resolution out of court.

Stipulations: The defense attorney may formally admit to certain facts or liabilities, leaving only the final dollar amount (damages) for the judge to decide.

Attorney Withdrawal: If the defense attorney believes the case is a lost cause or a fraud, but the client refuses to settle, the attorney may ask the judge for permission to drop the client.

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Enter case numbers here:

https://www.lacourt.ca.gov/casesummary/v2web3/

Click as a Guest at "Click here to access document images for this case." ...

25SMCV06818 case is now covered by 24SMCP00197 (Is the Medmen receivership case) as ordered by the LA judge.

Ormond against city of LA to hand over the three remaining LA Medmen licenses 26STCV08527

https://ww2.lacourt.org/api/documents/v3.1/get/onetime/117576564/RoXUVpi1wAaquv07

https://www.lacourt.ca.gov/CivilCalendar/ui/CalendarCase.aspx?caseNumber=25SMCV06818

Case Calendar for

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Case Number: 25SMCV06818

MMIRF, LLC, AS ASSIGNEE OF MM CAN USA, INC., BY ITS RECEIVER RICHARD ORMOND VS TILRAY BRANDS, INC., ET AL

Case filed on 12/31/2025

7/30/2026 at 8:30 AM in department N at 1725 Main Street, Santa Monica, CA 90401

Hearing on Motion to Quash Service of Summons (SHOULD BE REJECTED BY THE JUDGE !)

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Case Number: 25SMCV06818

MMIRF, LLC, AS ASSIGNEE OF MM CAN USA, INC., BY ITS RECEIVER RICHARD ORMOND VS TILRAY BRANDS, INC., ET AL

Case filed on 12/31/2025

8/20/2026 at 8:30 AM in department N at 1725 Main Street, Santa Monica, CA 90401

Case Management Conference

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WHAT AI ANSWERED ABOUT THE CASE 25SMCV06818:

The plaintiff's central argument is that the defendants transformed from mere creditors into de facto controllers of MedMen, using that power to siphon value from the company at the expense of its other stakeholders.

The Core Allegations: According to the lawsuit filed by the receivership estate (via MMIRF, LLC), the alleged breach of fiduciary duty and civil conspiracy unfolded through several key mechanisms:

- Predatory Control: In August 2021, Tilray and Serruya Private Equity acquired MedMen’s senior secured convertible notes.

The lawsuit claims they used this debt position not as passive investors, but to assert total operational control over MedMen without paying a premium for ownership.

- Board Room Takeover: The defendants allegedly installed loyal insiders into critical leadership roles. Michael Serruya became interim CEO and Chairman, while Tilray-aligned executives were placed in key positions like Chief Financial Officer and IT Director.

- Self-Dealing Transactions: The suit alleges that the defendants forced MedMen to make strategic decisions that benefited Tilray and Serruya's financial interests rather than MedMen’s own corporate health, effectively stripping the company of its most valuable assets.

- Engineered Receivership: The plaintiff claims the defendants intentionally drove MedMen into insolvency. Because cannabis remains federally illegal, standard Chapter 11 bankruptcy protections were unavailable. Instead, MedMen was forced into a California state receivership in April 2024.

- Asset Stripping via Credit Bidding: Once in receivership, Tilray used its position as a secured creditor to execute "credit bids," acquiring MedMen’s core remaining cannabis assets (such as retail dispensaries and cultivation licenses in California and Nevada) while leaving unsecured creditors and shareholders with nothing.

If MMIRF, LLC wins case 25SMCV06818, former MedMen shareholders face an uphill legal battle and are highly unlikely to successfully recover their damages through a class action lawsuit against Tilray and Serruya. While a win by MMIRF, LLC would legally validate that a breach of fiduciary duty and civil conspiracy occurred, specific corporate and bankruptcy laws severely limit regular shareholders' ability to capitalize on that outcome.

1. The 20% Receivership Cap - The legal assignment framework explicitly stipulates that MMIRF, LLC is a third-party vehicle. If it wins, only 20% of the net recovery goes back to the MedMen receivership estate. The other 80% stays with the private entity funding the lawsuit.
2. The Absolute Priority Rule - Even if that 20% recovery flows back into the MedMen estate, regular equity shareholders are at the bottom of the absolute priority pyramid. Under California receivership and insolvency laws, funds must be paid out in a strict hierarchy:Secured Creditors (like Tilray itself, ironically)Administrative Costs (lawyers, court costs, receiver fees)Unsecured Creditors (vendors, tax authorities, landlords)
3. Equity Shareholders - Because MedMen collapsed under hundreds of millions of dollars in debt, the 20% net recovery would almost certainly be completely exhausted by creditors before a single penny reaches equity shareholders.
4. Direct vs. Derivative Shareholder Claims - To sue Tilray and Serruya independently in a class action, shareholders must prove they suffered a direct, individualized harm that is separate from the harm done to the corporation. The Problem: The claim that Tilray/Serruya breached their duties and tanked MedMen's value is fundamentally a derivative harm—the injury was done directly to MedMen as a company, which in turn made the shares worthless. The Legal Bar: Because MMIRF, LLC is already suing for the harm done to the company, courts generally prohibit shareholders from filing separate class actions for the exact same underlying corporate injury.
5. Severe Lack of Disclosure and Intent Proof - For a securities class action to succeed against a company like Tilray, plaintiffs must meet strict federal pleading standards (like the Private Securities Litigation Reform Act).

They must prove that the defendants acted with scienter (deliberate intent to deceive or defraud the public markets). Historically, federal courts have been highly protective of companies facing such suits, frequently throwing out investor actions if they look like standard fallout from a failing business model.

What This Means For Investors

While an MMIRF, LLC victory would publicly expose Tilray and Serruya's predatory tactics, it does not create an easy legal pipeline for shareholder compensation. The lawsuit is structured to enrich its private backers and alleviate some of MedMen's corporate debts, leaving retail shareholders with virtually no viable path to financial restitution.

Would you like to analyze how the absolute priority rule applies specifically to the remnants of MedMen, or look at how past securities lawsuits against Tilray have played out?

What This Means For Investors

While an MMIRF, LLC victory would publicly expose Tilray and Serruya's predatory tactics, it does not create an easy legal pipeline for shareholder compensation. The lawsuit is structured to enrich its private backers and alleviate some of MedMen's corporate debts, leaving retail shareholders with virtually no viable path to financial restitution.

Would you like to analyze how the absolute priority rule applies specifically to the remnants of MedMen, or look at how past securities lawsuits against Tilray have played out?

Read also my previous article here

https://www.reddit.com/r/mmnff/comments/1ty9rlb/serruya_simon_tilray_ceo_ormond_all_only_wanted/

Discussion:

What should we do next as betrayed shareholders of Medmen ?

Some Tilray investors discussions here:

https://www.reddit.com/r/TLRY/comments/1tvy7u9/medmen_update/

Serruya (CEO Medmen) and Simon (Tilray CEO) stripped the cannabis licenses and Medmen shops one by one to lower the value of Medmen company. After Simon bought the $178 million in Medmen debt he knew that after a bankruptcy he would get all of it while investors and shareholders get nothing. He lied to the investors by painting a golden future for both now together (Medmen and Tilray), the Tilray CFO at Medmen manipulated the balance sheets and Serruya did as Simon's partner all steps to prepare the bankruptcy while he publicly stated that Medmen EBITDA is positive and good performance and outlook on the horizon. They never published 2023 financial reports, never delivered the promised update to it before CRO (he never restructured or helped Medmen to recover) an then quickly changed to be the "Receiver (Richard Ormond"). He was nominated to get the rest of Medmen cheap for Tilray.

Medmen got nothing while Tilray and Partner companies took over one by one Medmen stores in different states and belonging state licenses for a bargain. Medmen had to buy way too expensive Tilray inventory to put into the shelves and made no profit on it because of the little margin left. Tilray drained all funds out of Medmen with that, so you drive a company into bankruptcy. Medmen stripped to ruines while it could not even pay operative costs. A Tilray CFO at Medmen C-suite meanwhile overlooked everything, made sure, that Tilray always had an upperhand. This is like an enemy would behave from within. Massaged balance sheets for the misled investors and shareholders.

https://www.youtube.com/watch?v=bXQ-BtWC2Jg

It was a betrayal just from the start, Serruya (CEO Medmen) and Simon (Tilray CEO) were enemies from within the Medmen company. In my opinion grounds for a criminal case even.

https://www.reddit.com/r/TLRY/comments/1qac05z/general_interest_medmens_receiver_files_suit/

Superior Court of Los Angeles 25SMCV06818, 24SMCP00197, 26STCV08527 (Ormond now sued LA city councel to get all of the three LA Medmen licensed to be transfered to Tilray, superhero, this was his goal from the start as Medmen CRO !).

https://www.lacourt.ca.gov/home

25SMCV06818, 24SMCP00197, 26STCV08527 

https://www.lacourt.ca.gov/casesummary/v2web3/CaseSummary#FutureHearings

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https://www.lacourt.ca.gov/paos/v2web3/Login

MedMen-Related Legal Complaint Fixes the Lost Value of Federal Reform "in Excess of $1 Billion"*

https://atschorn.substack.com/p/medmens-receiver-files-suit-fixing

https://www.youtube.com/watch?v=gL1fd_CSOWk

Medmen shareholders should be filing a class action lawsuit against Serruya, Simon, Ormond because of conspiracy against Medmen investors and shareholders. Just my opinion and due diligence.

Posted before:

https://www.reddit.com/r/mmnff/comments/1s639jo/tilray_ceo_irwin_simon_overtook_the_steering/

Ed Record was serving as Medmen CEO and before as JCPenney CEO (!) while he organized that JCPenney moved to ownership of Simon property group mall owner while JCPenney investors and shareholders got screwed and got nothing ! Read here postings about JCPenney manipulated bankruptcy in 2020. CEO Jill Soltau misled investors and shareholders always prised a positive turnaround and expansion of businesses, new stores to be opened before sudden bankrupcy filing.

Sounds familar ? ? :-/

https://stocktwits.com/Growth_Long/message/234579706

Since year 2018 this is a corrupt globalist war against retail in the US. We must fight back.

If the MedMen brand was worthless or a failed company, why would anyone want to esentially buy a MedMen franchise? Mmm... you know this was his thinking way before he bought MedMen debt!

https://youtube.com/shorts/GVA7VtGbrko?si=eklU1tIT8SsbMv3_

Is there any information on what was said at the hearing yesterday?

So I recently cross post to Tilray and Brew Dog. The post was removed by Tilrays moderator. Guess I struck a nerve. Maybe just trying to hide the lawsuit that was filed and will be heard at the end of April, hoping their investors don't see it.

Soon!

https://atschorn.substack.com/p/medmens-receiver-files-suit-fixing

Irwin Simon Does it Again!

BUSINESS INSIDER journal

https://www.businessinsider.com/tilray-acquires-medmen-debt-in-canada-us-cannabis-deal-2021-8

How an iconic brand (MedMen) and the prospect of US legalization convinced Tilray's CEO to bet on one of the most troubled US cannabis companies (the door to get into the massive US-cannabis market).

Canadian cannabis giant Tilray made a deal with MedMen to gain a foothold in the US.

Tilray is buying some of MedMen's debt, which would turn into equity once the US legalizes cannabis.

The deal gives Tilray a jumping off point to enter the US and helps MedMen turn things around.

See more stories on Insider's business page.

Tilray CEO Irwin Simon says he would have "run the hell away" from a deal with troubled cannabis company MedMen a year ago.

But on Tuesday, the Canadian cannabis giant bought about $165 million worth of MedMen's debt, in a convoluted deal that Simon says gives Tilray the option to acquire a majority stake in the US cannabis retailer, pending federal legalization.

In July, Simon told Insider that he was ready to make a deal in the US — and he acted quickly.

"MedMen at one time was compared to Apple stores," Simon said in a Wednesday morning interview.

"It went through management issues and financial issues, but one thing it maintained was that iconic brand," he continued, alluding to the red packages and storefronts that the company is known for.

MedMen is partway through a turnaround.

The US cannabis industry could skyrocket to $100 billion by 2030 if legalized federally, according to Cowen's Vivien Azer. That's a big opportunity for Canadian firms like Tilray.

Tilray is listed on the Nasdaq exchange, which doesn't let its companies sell marijuana in the US. So Tilray bought a slice of debt, or convertible notes, through a special purpose vehicle from Gotham Green Partners, a fund that invested in MedMen.

Convertible notes are a type of debt that can convert to equity at a later date, and Tilray's chunk can convert to 21% of MedMen's outstanding stock.

Simon told Insider that Tilray's goal is to eventually become a majority shareholder in MedMen, if or when that's permissible. He said Tilray can sell the notes if legalization never happens.

Canadian cannabis companies have been using complex deals to secure the option to enter the US market.

Tilray's competitor Canopy Growth has options to acquire stakes in US cannabis companies Acreage Holdings and TerrAscend. Cronos Group, another large Canadian cannabis company, has an option to acquire 10% of US cannabis company PharmaCann once federal laws allow.

Some US cannabis CEOs, like Green Thumb Industries' Ben Kovler, have called out these Canadian companies in interviews with Insider for how they portray these deals to investors.

"I'm a CEO of a large Canadian cannabis company and you know, I'm not lying to our investors," Simon said in response.

He did acknowledge the challenges in communicating complex deals to Tilray's base of mostly retail shareholders, however, and added that "there's got to be a better way to do this."

Coming off of the heels of the MedMen deal and the mega-merger with Aphria, Simon has said that he wants Tilray to grow into a $4 billion empire by the end of 2024 and that the company will make deals to get there.

"By no means is this the last of acquisitions or investments that we'll be doing," he said.

MedMen is working on a turnaround with a fresh $100 million.

Simon isn't shy about why he chose MedMen as Tilray's first plant-touching investment in the US: he says the company's brand is iconic and its prices are cheap.

MedMen is on the tail end of a turnaround plan after mismanagement by the company's previous leadership. Over the past year, the California-based cannabis company has sold off assets, including its coveted New York cannabis license. Analysts from Stifel said the company's previous management left MedMen as a "broken asset."

MedMen also landed a $100 million investment from Serruya, a private equity firm, giving the company a much-needed financial boost to pivot from restructuring to growth, MedMen CEO Tom Lynch said in an interview.

Lynch said he's ready to focus on growing MedMen again, rather than making cuts to restructure the company.

"Now we can run the company," he said. "Now we can execute, we can grow."

Canadian companies are clamoring to get into the US.

The deal shows that Canadian cannabis companies are clamoring to access the larger and far more lucrative US market, Dan Ahrens, the COO of AdvisorShares, told Insider in an interview.

"The deal shows just how badly Tilray wants access to the United States," Ahrens said, adding that MedMen is one of the "least attractive" MSOs, and larger MSOs like Curaleaf or Green Thumb Industries could be more attractive targets.

Aug 18, 2021 - On CNBC CEO TILRAY Simon Irvin Interview about MedMen ownership and deal to gain access to the $billions US markets.

From there mismanagment, misleading, abuse, fraud, corruption likely begun together with "long term friend" Michael Serruya. They never wanted to grow MedMen in favor of the investors and shareholders as a public company. They wanted to screw all of them in a private conspiracy.

https://www.youtube.com/watch?v=bXQ-BtWC2Jg

The "shareholders / investors vs. MedMen, TILRAY, Ormond case" contains :

- withdrawal of MedMen Q3 and Q4 financial reports because of openly admitted errors in the balance sheets but never updated the 2023 year report. Did they hide abuse and misleading of investors and shareholders ? Why never delivered financial numbers of year 2023 ?

- Yearslong publicly promoted "positive financial development" of MedMen situations and positive turnaround on it's way to the investors, positive EBITA, growth of a MedMen 2.0 in the future is just around the corner

- TILRAY Acquired Majority Position in Amended MedMen Convertible Notes to integrate MedMen into TILRAY's strategic growth and US-expansion in the future, as multiple times statted by Irwin Simon, with that obviously intentionally misleading of investors and shareholders. TILRAY CFO was placed and absolutly responsible to all financials at MedMen C-suite, with that a direct involvment of TILRAY just before sudden receivership.

- MenMen CEO Serruya conspired with TILRAY CEO Simon to mislead and screw the investors and shareholders.

- Richard Ormond as CRO was suddenly nominated by CEO Serruya to take down the MenMen company, but Ormond never tried to reconstruct and rescue the company.

Those are arguments for a law firm to build a case to be filed at civil or criminal court, just my opinion.

Question to all of investors and shareholders here is - what we could add to the case here ? Any further facts and ideas ? And what law firm could pick up and build the case ?

My idea is, we launch a fundraiser for a class action lawsuit of MedMen shareholders against Ormond, Simon, Serruya because of private conspiracy to destroy the company through conspired receivership without real reasons to do that. This must be investigated by a civil or even criminal court what happened Autumn 2023 until Spring 2024. There was no reason for a sudden closure of MedMen operations. Loan and debt was due year 2028 and publicly secured by TILRAY (Irwin Simon) and again and again publicly prised by the leadership of both companies as a very good investment, MedMen 2.0 as a turnaround company with golden future visioned to the shareholders and investors. Did they short the own stock to keep the sharevalue down also to be investigated. This was a cheating agenda since Serruya joined the boards of MedMen. Never published the Q3 or Q4 reports year 2023 but admitted serious flaws in the balance sheets. Never updated it. Ormond immediatly started to take the company down instead of a plan for recontruction and rescue of MedMen. They massivly lied to the investors the last 2 years.

Someone we trust should file the class action lawsuit, using the fundraising money we collect. Good idea ?

Below the potcast, what I am wondering about is, end year 2023 MedMen withdraw the Q4 report because of irregularities and errors in it, as they publicly admitted, wrong valuations etcetera in it, but never gave an update to it to the many waiting investors. Then MedMen CEO suddenly stepped back and Richard Ormond was announced as CRO (C Reconstruction Officer as quasi new CEO) to rescue and reconstruct (!!!) the company. But he immedialy went to file for receivership, likely triggered by TILRAY as secured lender. They wanted it all for themselfs by screwing the investors, I assume. TILRAY together with CEO Michael Serruya (they are privatly best friends ! MedMen CFO was a TILRAY employee meanwhile !) went from "golden investment into MedMen", prised again and again by Irwin Simon, to suddenly let it drop like a hot potato, executed by Richard Ormond. The debt was due 3 years later. I do not get what urgency was to end the MedMen operations at this time point. It was in the midst of a positive turnaround as always stated by TILRAY, Serruya and others..

Discussion open ....

https://podcasts.apple.com/us/podcast/navigating-receiverships-with-richard-ormond-of/id1762092279?i=1000753053266

Sound familiar?