A Closer Look at the Allegations and Berner’s Response
Investors in global cannabis brand Cookies have recently filed lawsuits, alleging that company leaders have been using threats, violence, and financial kickbacks to enrich themselves at the expense of the company’s shareholders. In this article, we examine the details of these lawsuits and their implications for the cannabis industry, as well as Berner’s response to the allegations.
Allegations of Self-Dealing and Personal Benefits
The lawsuits claim that Cookies CEO Berner and other company officials engaged in pervasive self-dealing and strong-arming others into paying them millions in personal benefits and kickbacks. One quote from the lawsuit alleges that these officials “use the popularity of the Cookies brand to engage in pervasive self-dealing… and to strongarm and bully others.”
Exploitation of Company Resources
The suits further claim that Berner and his associates have been misappropriating company funds and resources for their own private “slush funds.” According to the legal documents, “Defendants’ pervasive wrongdoing has caused their own pockets to be lined while causing massive losses to Cookies and its shareholders.”
Violence and Threats as Business Tactics
The lawsuits also reveal allegations that Berner and his associates have used threats and occasional violence to negotiate deals or prevent them from falling apart. In one instance, the suit alleges that defendants “threatened to, or did, cause property and bodily injury.”
Side Deals and Financial Irregularities
Additionally, the lawsuits allege that Berner and others used their positions at Cookies to negotiate side deals for other companies they owned or had stakes in, when such deals should have benefited Cookies’ shareholders. The suit also claims that Berner and Berling took on a recent $5 million loan without proper approval, which it cites as an example of their “reckless spending.”
Berner’s Response to the Allegations
Berner has addressed the allegations in a recent Instagram post, stating, “These guys have made extremely false, harmful, damaging claims about myself that are completely just not true.” He adds that he looks forward to the day in court when they can prove the claims are false. Berner also speaks about his recent battle with cancer and his determination to fight the accusations: “I just beat cancer, and I plan on beating this the same way: By staying focused.”
Implications for the Cannabis Industry
These lawsuits shed light on the challenges faced by the cannabis industry, as well as the importance of ethical business practices. As the legal battles continue, the reputation and future of the Cookies brand hang in the balance.
The Road Ahead for Cookies
With two lawsuits pending against Cookies and its leadership, the outcome of these cases may have significant consequences for the company and the wider cannabis industry. It remains to be seen how these legal battles will unfold and what their ultimate impact will be, as well as how Berner’s response will factor into the proceedings.
UPDATE:
CRP has voluntarily dismissed all suits and claims, and expresses a sincere regret for any misunderstandings CRP’s allegations may have caused. CRP has sought to seal and dismiss any such allegations in order to preserve the integrity of the COOKIES brand and partnership.
