2 Chainz, a well-known rapper, invested $1.5 million in a Los Angeles cannabis company in 2021, hoping to profit from California’s booming legal cannabis market. However, the deal turned out to be a scam, resulting in the rapper losing almost his entire investment, according to a lawsuit filed in the Los Angeles Superior Court.
The lawsuit, filed by Antimatter Holdings, alleges that 2 Chainz was introduced to the cannabis company by Snoop Dogg’s tour manager and decided to invest in the Pineapple Express dispensary in Hollywood. The dispensary was supposed to open in April 2021 but faced multiple delays, finally opening its doors in March 2022.
Despite the terms of the investment agreement, which included a monthly dividend and the option to withdraw 110% of the investment with a 30-day notice, the company failed to return Antimatter’s money when requested in May 2022. Even after personal texts from 2 Chainz to the co-founder of the dispensary, Vincent Zadeh, the company refused to honor the agreement.
The Pineapple Express dispensary has since closed its doors, but plans to reopen in September, according to a co-founder. However, multiple lawsuits have been filed against Zadeh and related companies, alleging financial irregularities and tax issues.
In response to the lawsuit, a co-founder of Pineapple Express stated that the claims were false and that the matter would be resolved through arbitration. Attorneys representing 2 Chainz have yet to comment on the situation.
This case highlights the risks associated with investing in the cannabis industry, even in a lucrative market like California. Investors should conduct thorough due diligence and seek legal advice to protect themselves from potential scams and fraud. It serves as a cautionary tale for those looking to enter the cannabis business and emphasizes the importance of transparency and accountability in financial transactions within the industry.
