Blum Holdings, Inc. Announces Final Global Settlement with People’s California, LLC
Blum Holdings (OTCQB: BLMH) has announced a comprehensive settlement with People's California, , ending over two and a half years of litigation. The settlement resolves multiple legal cases, including a $23M breach of contract action and various derivative actions against the company's officers and directors.
The agreement includes mutual releases between all parties and dismissal of eight different legal proceedings with prejudice. People's California has agreed to support the Chapter 11 bankruptcy plan of Blüm's subsidiaries, Unrivaled Brands and Halladay Holding. The settlement requires final documentation and approval from the bankruptcy court judge.
Blum Holdings (OTCQB: BLMH) ha annunciato un accordo completo con People's California, ponendo fine a oltre due anni e mezzo di contenzioso. L'accordo risolve molteplici casi legali, inclusa un'azione per violazione di contratto da 23 milioni di dollari e varie azioni derivate contro gli ufficiali e i direttori dell'azienda.
L'accordo prevede liberatorie reciproche tra tutte le parti e la bocciatura di otto diversi procedimenti legali con pregiudizio. People's California ha accettato di sostenere il piano di bancarotta Chapter 11 delle sussidiarie di Blüm, Unrivaled Brands e Halladay Holding. L'accordo richiede documentazione finale e approvazione da parte del giudice del tribunale fallimentare.
Blum Holdings (OTCQB: BLMH) ha anunciado un acuerdo integral con People's California, poniendo fin a más de dos años y medio de litigios. El acuerdo resuelve múltiples casos legales, incluida una acción por incumplimiento de contrato de 23 millones de dólares y varias acciones derivadas contra los funcionarios y directores de la empresa.
El acuerdo incluye liberaciones mutuas entre todas las partes y la desestimación de ocho procedimientos legales diferentes con perjuicio. People's California ha acordado apoyar el plan de quiebra del Capítulo 11 de las subsidiarias de Blüm, Unrivaled Brands y Halladay Holding. El acuerdo requiere documentación final y aprobación del juez del tribunal de quiebras.
블룸 홀딩스 (OTCQB: BLMH)가 피플스 캘리포니아와 포괄적인 합의를 발표하며 2년 반 이상의 소송을 종결지었습니다. 이 합의는 2,300만 달러의 계약 위반 소송 및 회사 임원과 이사들에 대한 다양한 파생 소송을 포함한 여러 법적 사건을 해결합니다.
합의에는 모든 당사자 간의 상호 면책과 편견이 있는 8건의 다양한 법적 절차의 기각이 포함됩니다. 피플스 캘리포니아는 블룸의 자회사인 언리발드 브랜드와 할라데이 홀딩의 챕터 11 파산 계획을 지원하기로 합의했습니다. 이 합의는 최종 문서화와 파산 법원 판사의 승인을 요구합니다.
Blum Holdings (OTCQB: BLMH) a annoncé un règlement complet avec People's California, mettant fin à plus de deux ans et demi de contentieux. Le règlement résout plusieurs affaires juridiques, y compris une action pour rupture de contrat de 23 millions de dollars et diverses actions dérivées contre les dirigeants et administrateurs de l'entreprise.
L'accord comprend des libérations mutuelles entre toutes les parties et le rejet de huit procédures judiciaires différentes avec préjudice. People's California a accepté de soutenir le plan de faillite du Chapitre 11 des filiales de Blüm, Unrivaled Brands et Halladay Holding. Le règlement nécessite une documentation finale et l'approbation du juge de la cour de faillite.
Blum Holdings (OTCQB: BLMH) hat eine umfassende Einigung mit People's California bekannt gegeben, die über zweieinhalb Jahre Rechtsstreit beendet. Die Einigung löst mehrere rechtliche Fälle, darunter eine Klage wegen Vertragsbruchs über 23 Millionen Dollar und verschiedene derivative Klagen gegen die Führungskräfte und Direktoren des Unternehmens.
Die Vereinbarung umfasst gegenseitige Freistellungen zwischen allen Parteien und die Abweisung von acht verschiedenen rechtlichen Verfahren mit Vorurteil. People's California hat zugestimmt, den Chapter-11-Insolvenzplan von Blüms Tochtergesellschaften, Unrivaled Brands und Halladay Holding, zu unterstützen. Die Einigung erfordert die endgültige Dokumentation und die Genehmigung durch den Insolvenzrichter.
- Resolution of $23M breach of contract litigation
- Settlement of multiple legal proceedings reducing legal expenses
- People's California's support for Chapter 11 bankruptcy plan
- Mutual release agreement reducing future legal risks
- Subsidiaries remain in Chapter 11 bankruptcy proceedings
- Settlement requires final court approval
DOWNEY, Calif., Feb. 24, 2025 (GLOBE NEWSWIRE) -- Blum Holdings, Inc. (OTCQB: BLMH) (the “Company,” “Blüm,” “Blüm Holdings,” “we” or “us”), a California-based publicly traded holding company and cannabis operator, announced today that it has reached a global settlement with People’s California, LLC (“People’s California”) extinguishing over two and a half years of litigation brought by People’s California against Blüm Holdings and its wholly owned subsidiaries (and now debtors-in-possession in Chapter 11 bankruptcy proceedings), Unrivaled Brands, Inc. (“Unrivaled”) and Halladay Holding, LLC (“Halladay” and along with Unrivaled, the “Debtors”).
Pursuant to the binding terms spoken into the record for the United States Bankruptcy Judge mediating the matter, the settlement contemplated that “People’s will support the Debtor’s Chapter 11 plan…” and made explicit that “there’ll be a full and general release, a mutual release between the parties with 1542 waivers for the Debtors, the People’s parties, officers, directors, managers, agents, past and present, and attorneys, professionals, affiliates, subsidiaries, and parent companies on both sides.”1
The terms of the settlement went further to say that the litigation between the parties would be “dismissed as to all parties with prejudice”2 including:
1.) People's California, LLC v. Unrivaled Brands, Inc. (Case No.: 30-2022-01270747-CU-BC-CJC); a
2.) People's California, LLC v. Kovacevich, et al (Case No.: 30-2022-01272843-CU-MC-CJC); a derivative action against certain of Unrivaled’s former officers and directors.
3.) People's California, LLC v. Carrillo, et al (Case No. 30-2024-01416247-CU-PP-CJC); a second derivative action against certain of Blüm Holdings current officers and directors.
4.) People's California, LLC v. Carrillo, et al (Case No..: 30-2024-01419068-CU-CO-CJC); a defamation action against Blüm Holdings and management, among others.
5.) Unrivaled Brands Inc. v. Bernard Steimann, et al (Case No.: 30-2024-0138427-CU-CP-CJC); a breach of contract action brought by Unrivaled against Bernard Steimann and Troup Construction.
6.) People’s California, LLC’s Notice of Motion and Motion For Entry of an Order Dismissing Debtor’s Chapter 11 Bankruptcy Case (Case No. 2:24-bk-19127-BB); a motion to dismiss the Chapter 11 bankruptcy case.
7.) People's California, LLC v. Unrivaled Brands, Inc. (Adversary Proceeding Case No. 2:24-ap-01274-BB); the
8.) Unrivaled Brands, Inc. et al. v. People’ California, LLC (Adversary Proceeding Case No. 2:24-ap-01272-BB); a lawsuit to avoid and recover alleged preferential and/or constructively fraudulent transfers of money and liens from Unrivaled Brands and Halladay Holding to People’s California, LLC.
The settlement is “a final settlement that’s subject to documentation and approval”3 by the presiding judge in the Chapter 11 proceedings of Unrivaled and Halladay. Representatives of each of the respective parties verbally ratified for the record that they “understood the terms of the agreement read on the record and that they agree that they are binding.”4
Blüm Holdings CEO, Sabas Carrillo, said, “We are very pleased with the outcome and terms of the settlement and look expectantly to the future of Blüm.”
About Blüm Holdings
Blüm Holdings is a leader in the cannabis sector. Our commitment to quality, innovation, and customer service makes us a trusted name in the cannabis industry, dedicated to shaping its future. Blüm Holdings, through its subsidiaries, operates leading dispensaries throughout California as well as several leading company-owned brands including Korova, known for its high potency products across multiple product categories, including the legendary 1000 mg THC Black Bar. As both a holding company and a marketing platform, Blüm aims to leverage its growing ecosystem to accelerate customer and retail investor acquisition, increase brand awareness, and create value across its portfolio.
For more info, please visit: https://blumholdings.com.
Follow us on Instagram @blumholdings
Contact:
Jason Assad
LR Advisors LLC.
jassad@blumholdings.com
678-570-6791
Cautionary Language Concerning Forward-Looking Statements
Certain statements contained in this communication regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These include statements regarding management's intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. The Company uses words such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “will,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions of the PSLRA. Such forward-looking statements are based on the Company’s expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors.
New factors emerge from time-to-time and it is not possible for the Company to predict all such factors, nor can the Company assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Such risks may include, among other things, the risk that the Company will not achieve the anticipated benefits of Transaction, such as the stabilization and growth of the Company’s business; the risk that we may not be able to execute our growth strategies; the risk that we may not successfully negotiate and enter into definitive agreements for the Transaction; and the risk that even if we are able to negotiate and enter into definitive agreements, the Transaction may not be completed. Additional risks and uncertainties are identified and discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the SEC. Forward-looking statements included in this release are based on information available to the Company as of the date of this release. The Company undertakes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this release.
1 Transcript of Proceedings Before the Honorable Robert Kwan United States Bankruptcy Judge, Case No. 2:24-bk-19127-RK
2 Transcript of Proceedings Before the Honorable Robert Kwan United States Bankruptcy Judge, Case No. 2:24-bk-19127-RK
3 Transcript of Proceedings Before the Honorable Robert Kwan United States Bankruptcy Judge, Case No. 2:24-bk-19127-RK
4 Transcript of Proceedings Before the Honorable Robert Kwan United States Bankruptcy Judge, Case No. 2:24-bk-19127-RK
FAQ
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