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Receiver Appointed In Calif. Dispensary Contract Dispute

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A Los Angeles judge has appointed a receiver to take over operations of a dispensary at the center of a suit by the dispensary's owner alleging that former executive Vincent Mehdizadeh had exploited a coveted social equity license and sought to take over the business.

In an order signed Monday, Superior Court Judge Michael L. Beckloff appointed Lanes Management Services, managed by Ted Lanes, as receiver of the Pineapple Express dispensary, and ordered defendant Pineapple Ventures Inc. to turn over the keys and all assets associated with the business.

According to the order, Lanes is to correct any operational deficiencies and ensure compliance with local and state regulations, and can enter contracts and retain legal counsel to represent the dispensary, subject to the court's approval.

The order also blocks the defendants from collecting profits or income from the business, except for rent, or otherwise taking part in the business or interfering with the receiver's conduct, including entering the businesses without the receiver's written consent.

The judge added in a footnote that notwithstanding anything in the order to the contrary, nothing precludes the defendants from prosecuting an unlawful detainer action against the plaintiffs.


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