Item 8.01 Other Events.
Notice of Change of Date for Final Fairness Hearing for the Derivative Actions
As previously reported in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, as well as on Form 8-K filed with
the Securities and Exchange Commission on February 3, 2016, on October 16, 2015, solely to avoid the costs, risks, and uncertainties inherent in litigation, Notis Global, Inc. (p/k/a Medbox, Inc.) (the Company) and the
individual defendants entered into a Stipulation and Agreement of Settlement (the Stipulation) in the following previously disclosed stockholder derivative lawsuits: (1)
Mike Jones v. Guy Marsala, et al.
, in the U.S. District
Court for Central District of California; (2)
Jennifer Scheffer v. P. Vincent Mehdizadeh, et al.
, in the Eighth Judicial District Court of Nevada; (3)
Kimberly Y. Freeman v. Pejman Vincent Mehdizadeh, et al.
, in the Eighth
Judicial District Court of Nevada; (4)
Tyler Gray v. Pejman Vincent Mehdizadeh, et al.
, in the U.S. District Court for the District of Nevada; (5)
Robert J. Calabrese v. Ned L. Siegel, et al.
, in the U.S. District Court for
the District of Nevada; (6)
Patricia des Groseilliers v. Pejman Vincent Mehdizadeh, et al.
, in the U.S. District Court for the District of Nevada; (7)
Michael A. Glinter v. Pejman Vincent Mehdizadeh, et al.
, in the Superior
Court of the State of California for the County of Los Angeles (collectively, the Derivative Actions) brought against certain current and former officers and directors (as previously disclosed). The settlement is dependent upon final
approval by the United States District Court for the Central District of California (the Court).
The Stipulation was filed
with the Court on December 18, 2015. On February 3, 2016, the Court issued an Order Preliminarily approving the settlement of the Derivative Actions and providing for Notice (Preliminary Order).
On April 22, 2016, the Court issued an Order granting shareholder Richard Merritts (Merritts) Motion to Intervene in
the lawsuit titled
Mike Jones v. Guy Marsala, et al.
, in order to conduct limited discovery. The Order granting the Motion to Intervene also continued the final fairness hearing, previously scheduled for May 16, 2016, at 1:30 p.m., to
August 15, 2016, at 1:30 p.m.
On August 2, 2016, the Court issued another Order granting Merritts and the Companys
Ex Parte
Application for Continuance of Hearing Date for Final Fairness Hearing and continued the final fairness hearing, previously scheduled for August 15, 2016, at 1:30 p.m., to September 22, 2016, at 1:30 p.m. The Court also
ordered that opening briefs and supporting documents in support of final approval of the settlement shall be filed on or before August 15, 2016, that all objections of Notis Global shareholders to the settlement shall be filed on or before
August 29, 2016, and that all reply papers in support of the settlement and responses to shareholder objections shall be filed on or before September 12, 2016.
On August 19, 2016, the Court issued another Order granting Merritts and the Companys
Ex Parte
Application for Continuance
of Hearing Date for Final Fairness Hearing and continued the final fairness hearing, previously scheduled for September 22, 2016, at 1:30 p.m., to October 17, 2016, at 1:30 p.m. The Court also ordered that opening briefs and supporting documents in
support of final approval of the settlement shall be filed on or before September 9, 2016, that all objections of Notis Global shareholders to the settlement shall be filed on or before October 7, 2016, and that all reply papers in support of the
settlement and responses to shareholder objections shall be filed on or before October 7, 2016, and that all depositions shall be completed on or before September 14, 2016.
The disclosure set forth herein provides notice to potential objectors of the change to the hearing date.
The Company will publish this disclosure through a link to this current report on Form 8-K on the Companys website (www.notisglobal.com)
on the page titled Investors.