The Parent Co Faces Lawsuit Alleging Gender Discrimination Financial Inaccuracies And Illegal Shipment Of Pot To Monogram Event

Updated 11:53a 3/10/23

According to a recent report by SFGATE, a San Francisco Bay Area news outlet, Jay-Z’s Monogram cannabis brand is facing serious accusations in a lawsuit filed by former The Parent Company (TPCO) vice president Cathi Clay. The lawsuit alleges that TPCO engaged in gender discrimination, filed inaccurate financial reports, and illegally shipped pot from California to New York. In this article, we’ll delve into the details of the allegations, as well as examine TPCO’s response and potential consequences for the cannabis industry as a whole.

This article will explore the allegations made in the lawsuit and the response from TPCO, as well as discussing the potential consequences for the company and the wider cannabis industry.

Gender Discrimination Allegations

Clay alleges that she experienced years of harassment from TPCO executives, including Chief Financial Officer Mike Batesole. Batesole is accused of acting aggressively towards Clay, publicly questioning her abilities, and making inappropriate comments about women, hiring ‘housewives’ to perform accounts payable, people of color, and the skill sets of employees.

The lawsuit claims that Clay’s treatment worsened after she warned TPCO executives about the financial inaccuracies in the company’s SEC filings. Clay filed a whistleblower report to the company in August of last year and resigned the following day, according to the lawsuit. She claims that she was “harassed and discriminated against” for reporting the financial and legal violations and was ultimately forced to resign from the company.

Illegal Shipment of Pot

The lawsuit also alleges that TPCO executives shipped cannabis products across state lines “to New York for a Monogram event with Shawn Carter.” Moving cannabis across state lines is a felony at the federal level, and California’s cannabis regulations strictly prohibit shipping legal cannabis out of state.

If these allegations are proven to be true, TPCO could face significant legal and financial consequences. It could also harm the reputation of the wider cannabis industry, which is still struggling to shake off its association with illegal drug trafficking.

Inaccurate Financial Reports

Another serious allegation made in the lawsuit is that TPCO filed inaccurate financial reports with the SEC in 2021 and 2022. If true, this could result in fines or legal action against the company.

TPCO Response

In response to the lawsuit, TPCO told SFGATE that the allegations are “false.” The company also stated that it does not comment on active litigation and plans to defend itself strongly against the accusations.

A representative from Roc Nation, reached out to Black Cannabis Magazine with a copy of the lawsuit clarifying that Monogram isn’t being sued only mentioned.

A representative for Shawn Carter could not be reached. David S. Ratner, an attorney for Cathi Clay, declined to provide documented evidence of the lawsuit’s claims.

Potential Consequences

If the allegations made in the lawsuit are proven to be true, TPCO could face significant legal and financial consequences. It could also harm the reputation of the wider cannabis industry, which is still struggling to gain wider acceptance and recognition as a legitimate business.

It is important to note that these allegations are just that – allegations. TPCO has yet to respond to the lawsuit formally, and the case has not yet gone to court. However, the seriousness of the allegations means that this case is one to watch for anyone involved in the cannabis industry.