[PRESS RELEASE] – DOWNEY, Calif., Feb. 24, 2025 – Blüm Holdings Inc., a California-based publicly traded holding company and cannabis operator, announced that it has reached a global settlement with People’s California LLC, extinguishing more than 2 1/2 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. and Halladay Holding LLC (the “debtors”).
Pursuant to the binding terms spoken into the record for the U.S. 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:
- People's California LLC v. Unrivaled Brands Inc. (Case No.: 30-2022-01270747-CU-BC-CJC); a $23M breach of contract action.
- 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.
- 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.
- 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.
- 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.
- 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.
- People's California LLC v. Unrivaled Brands Inc. (Adversary Proceeding Case No. 2:24-ap-01274-BB); the $23M breach of contract action removed from state court to federal bankruptcy court.
- 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.”
