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Marijuana company lawsuit settled

Recently, the marijuana dispensing solutions company Medbox was sued for fraud. The lawsuit has recently been settled, with the founder surrendering all his shares and leaving the company.

December 8, 2015

The marijuana dispensing solutions company Medbox recently was sued for fraud. Medbox founder and former majority shareholder P. Vincent Mehdizadeh surrendered his shares to settle the lawsuit, according to a press release.

"The complaint itself made very derogatory racial statements about my heritage as an 'Iranian immigrant' and a 'criminal,'" Mehdizadeh said in the release. "I am happy that all lawsuits are being dismissed and resolved without my contribution of any cash to the derivative or shareholder plaintiffs in those matters."

Mehdizadeh gave up 2 million shares to the derivative class and voluntarily retired the rest of his shares.

"My contribution of 2 million shares to the derivative class, with a current value of about $40,000, was necessary to get the cases resolved for the benefit of the company and its shareholders. A few months ago, I voluntarily retired 13 million shares for the benefit of the shareholders and donated another 2 million shares to charity," he said. "Contributing these additional shares to get these matters resolved was a no-brainer. I am happy to report I have moved on from Medbox and have transitioned to what I consider to be a better fit for my professional skills and talents."