John SchroyerA messy case of legal fingerpointing between two California companies has apparently ended amicably, with both Unrivaled Brands and People’s California agreeing to a settlement, according to a press release.
Although the terms of the settlement were not immediately disclosed, the end result is that both companies will “request a stay of all pending litigation,” according to the release.
The two companies became involved in a legal brawl last year, suing each other over various allegations of breach of contract, fraud, and other supposed misdeeds.
Santa Ana-based Unrivaled Brands (OTCQX: UNRV) acquired People’s California in 2021 for $76 million, a deal which included three existing retail cannabis shops in Southern California and permits for two more that have yet to be built out.
But last July, People’s sued Unrivaled and accused the company of not paying up on the monthly installments that were due under the terms of the deal, alleging Unrivaled was $5 million behind in payments by the time the suit was filed.
Unrivaled countersued a few months later and accused People’s California’s executives of stealing $5 million by manipulating company records.
But now the two companies have mended their fences and will move forward as originally planned.
“We are thrilled to put this months-long legal battle behind us,” Unrivaled CEO Sabas Carrillo said in the release.
“This settlement is a testament to what can be achieved by bringing people together who are motivated to find workable solutions to challenging problems,” Carrillo said. “Importantly, it unlocks our ability to complete the development of additional cannabis retail stores” in Riverside and Costa Mesa.
The release didn’t include a comment from executives at People’s California.
