Atlanta rapper 2 Chainz has filed a lawsuit against a cannabis company after an investment deal didn’t work out.
According to The Green Market Report, a group called the Pineapple Express Antimatter Series 1, which the “I’m Different” rapper is a part of, has sued Pineapple Ventures Inc. (PVI) owners for $1.5 million. In the lawsuit, which was filed in a Los Angeles court, they accuse Vincent Mehdizadeh, also known as Vincent Zadeh, and Pineapple Ventures Inc. of allegedly scamming 2 Chainz after promising big returns on his investment with no intention to make good on their promise.
They state that the company has a long history of defrauding investors.
“Over the years, they have used several different entities and investment instruments, but the outcome is always the same. Their typical pattern is to invite potential investors to glamorous events, often with celebrity guests. They promise lucrative returns on investments, which never materialize.”
In January 2021, 2 Chainz was approached about investing with PVI. After the promise of significant dividends, he was told that the store would open in three months, which didn’t happen. He was allegedly told that he had “put rights,” which means that after one year, he could request his entire investment repurchased for 110% of what he paid.
Investors
were told in December 2021 that they would get double the dividends due to the dispensary not opening when promised. After the store finally opened in February 2022, the investors expected to begin receiving double dividends but only received one dividend payment in March 2022. The investors decided in May 2022 to exercise the put option and receive the return on their investment. By December 2022, Zadeh told 2 Chainz that they were no longer honoring the put options.In a report by Law360, co-founder and director of investor relations for PVI, Matthew Feinstein, stated that the lawsuit was one of several “cookie-cutter” claims from minority shareholders in the dispensary. He said other claims would be handled in arbitration, as the stock purchase agreements contain an arbitration provision.
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