San Francisco’s most famous pot brand is getting pulled back into court, this time after a partner company accused Cookies of not paying for $4.75 million in cannabis products and then using “stolen property” to fraudulently enrich the Cookies company.
The lawsuit, filed in Los Angeles County court last week, centers around Cookies’ business deals in the hemp industry, a category of cannabis that can legally be sold across the country. Cookies has been working with a partner company called Cookies Retail Products (CRP) since 2021 to sell the hemp products, which include vapes and pre-rolled joints.
That deal between Cookies and CRP eventually went south and was terminated in April 2023 but required Cookies to purchase $4.75 million worth of hemp products from CRP, according to the lawsuit. The lawsuit lists nearly 100 different cannabis products included in the deal, such as gummies, pre-rolled joints and vape cartridges. CRP alleges that Cookies, through a related limited liability company called PTB Investment Holdings, received at least some of the goods but never followed through on paying for them.
The lawsuit does not specify how much of the cannabis made it back to Cookies, but CRP alleges that the company then used “the stolen property” to enrich the company at CRP’s expense. The lawsuit alleges that this “fraud” caused no less than $50 million in damages to the company.
Cookies was founded by Bay Area rapper Berner, whose legal name is Gilbert Milam Jr., and has become a global force in the marijuana industry. The brand is widely recognized for selling highly potent and flavorful cannabis strains, as well as being a prolific creator of streetwear merchandise inscribed with its brand name.
CRP is demanding a jury trial and at least $12.5 million in damages related to the lawsuit. Cookies did not immediately return an SFGATE request for comment.
IMAGE CREDIT: Rapper Berner performs onstage during the High Hopes Concert Series produced by Bobby Dee Presents at Toyota Arena on Nov. 19, 2022, in Ontario, Calif.
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