Rapper 2 Chainz is embroiled in a significant legal dispute following a troubled investment in a cannabis dispensary in Los Angeles. Reports indicate that he lost a substantial amount of money due to a deal gone wrong with Pineapple Express, a Hollywood-based dispensary.
The lawsuit details
According to a report by Law360, an investment firm named Antimatter Holdings has filed a lawsuit claiming that 2 Chainz was misled by Pineapple Express. The rapper was introduced to the dispensary by Damien Roderick, Snoop Dogg’s tour manager. Following this introduction, 2 Chainz agreed to invest $1.5 million in the dispensary.
Promises unfulfilled
The owners of Pineapple Express assured 2 Chainz that the dispensary would be operational by April 2021. However, the opening was delayed until March 2022 due to various issues. The lawsuit further claims that 2 Chainz was promised a monthly dividend and the ability to withdraw 110% of his investment with a 30-day notice.
Attempts to recover funds
In May 2022, Antimatter Holdings attempted to recover the invested funds, but no payments were made. By December 2022, 2 Chainz reached out to Vincent Zadeh, co-founder of Pineapple Express, only to be informed that the company would not honor their agreement.
Pineapple Express responds
In response to the lawsuit, Matthew Feinstein, another co-founder of Pineapple Express, stated that the claims are false and that they plan to file for arbitration to resolve the matter outside of court. This is not the first legal issue for Pineapple Express, which has faced multiple lawsuits from investors and reportedly owes nearly $1.69 million in back taxes.
Future of Pineapple Express
Despite the ongoing legal troubles, Feinstein has expressed intentions to reopen the Pineapple Express location by September.
The situation highlights the complexities and risks involved in cannabis investments, particularly in a rapidly evolving industry. As 2 Chainz navigates this legal challenge, it is a cautionary tale for others considering similar ventures.
