Zinger Key Points
- Investors say they were threatened and defamed on social media, "with some even experiencing physical violence."
- Berner denies the allegations, calling it a "sabotage" attempt while he was battling cancer.
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Two investors filed a lawsuit against the leaders of Cookies, the cannabis company of Gilbert Milam (aka Berner).
The investors, which together own a 10% stake in Cookies, allege that the brand is being used "for pervasive self-dealing and to strongarm and bully others into paying millions of dollars in personal benefits and kickbacks.”
The lawsuit, filed in February, was first reported by WeedWeek.
In addition to Milam, Cookies President Parker Berling and CFO Ian Habenicht, are also named in the lawsuit along with board member Lesjai Peronnet Chang, and employees Michael Roberts and Omar Ortiz.
"Third parties who resist the demands or do not comply with the company's rules are threatened and defamed on social media, with some even experiencing physical violence," the investors claim.
The investors also allege that Cookies' executives:
- Accepted lavish gifts without disclosing them to shareholders
- Used threats to secure deals
- Negotiated side deals with companies they owned or had stakes in
- Took out a $5 million loan without approval.
The investors also claim that when they raised their concerns, the company attempted to dilute the plaintiffs' interests.
Milam, who is CEO of Cookies, denied the allegations on Instagram. The investors who filed the complaint saw an opportunity to "sabotage" his name after he was diagnosed with cancer, he says.
For more information on the lawsuit, click here.
Photo: Courtesy Of Tingey Injury Law Firm On Unsplash
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