Business
Cannabis company Cookies faces lawsuits alleging kickbacks, personal enrichment
Cookies, among the most well-known American cannabis operators, is accused in separate lawsuits filed by current investors and a onetime business partner of using coercive “strongarm” tactics and bullying to force them to pay company executives “millions of dollars in personal benefits and kickbacks” as a cost of doing business with the brand.
The two lawsuits, filed in Los Angeles County Superior Court, claim Cookies President Parker Berling and other board members and executives solicited and pocketed “kickbacks” in the form of cash, jewelry and other gifts.
This “hidden forced private tax,” in the words of one suit, is levied on anyone wishing to do business with California-based Cookies, both lawsuits allege.
Cookies’ CEO and co-founder, Gilbert Milam Jr., commonly known as Berner, is named in only one of the suits, which was filed by a pair of investors. He declined to comment to MJBizDaily.
Through a spokesperson, Cookies and Berling also declined to comment.
In a video posted to his Instagram account last week, Berner blasted the allegations as “bulls***” and an attempt to take Cookies away from him during a personal health crisis.
At the very least, the lawsuits claim to offer a rare peek inside the Cookies empire, which includes retail clothing stores in New York City and San Francisco as well as Cookies-branded stores in such U.S. states as California, Colorado, Florida, Michigan and Nevada as well as Canada and Thailand.
First lawsuit details
The first lawsuit was filed in December by Florida-based Cookies Retail Products (CRP), which claims to have secured in 2021 an exclusive license to manufacture, market and sell Cookies-branded delta-8 THC and CBD products.
In the suit, CRP Chief Executive Paul Rock claims Cookies executives sabotaged nascent deals, stole product and forced CRP to use Cookies-selected preferred suppliers before threatening to revoke CRP’s license to use Cookies’ branding.
Before that, Cookies took kickbacks on deals between CRP and third-party vendors on top of the unspecified licensing fee and royalties paid by CRP to use the Cookies logo and other intellectual property, the suit claims.
After Cookies executives meddled in various other deals, CRP claims to have been saddled with “millions of dollars in spoiling vape cartridges, blunts, hemp smokes, 1gram Vaporizers, Gummies, and Dab Liquids.”
That suit, which claims damages in excess of $38 million, names two Cookies companies, Berling and other Cookies C-suite executives.
Berner is not named in this suit.
Second lawsuit details
In the second suit, refiled on March 8, two Cookies investors – who together say they own 10% of the company – claim a similar pattern of behavior that benefits executives at the expense of the company.
Berner “and his cohorts,” including Berling and Cookies executives Ian Habenicht and Lesjai Peronnet Chang “use the popularity of the Cookies brand to engage in pervasive self-dealing without regard to inherent conflicts of interest and to strongarm and bully others into paying them millions of dollars in personal benefits and kickbacks,” the suit alleges.
In their suit, BR CO I and NedCo – the latter is controlled by Ned Fussell, a co-founder of California cannabis manufacturer CannaCraft – claim Cookies board members steered contracts and deals toward outside companies they wholly own or controlled.
These include a tech firm owned by a company called Mesh Ventures – Berner and Berling are co-owners – to which Cookies pays “hundreds of thousands of dollars in ‘software development fees’ for no discernible benefit,” as well as a construction company owned by Berling’s brother, the suit claims.
Anyone licensing Cookies is instructed to use Seth Berling’s construction firm GCI “even though GCI often costs more than double” other outfits, “so that he (Berling) can take kickbacks from GCI for his own personal benefit,” the suit claims.
Anyone who resists is “threatened, including with physical violence and slanderous blasts on social media,” the suit adds.
The lawsuit further claims that Berner and Berling use Cookies company cash and resources as “lifestyle slush funds” that bankroll their “lavish” way of life as well as promoting their own personal projects.
The suit seeks unspecified damages. It also asks a judge to remove Berner and Berling from Cookies’ board.
Berner rejects claims
In his April 19 Instagram video, Berner called the claims “bulls***” and attempts to take his company away from him that the litigants deliberately timed with his public revelation of a cancer diagnosis.
The San Francisco-bred entrepreneur and rapper, who maintains a residence in nearby Marin County, revealed a stage 3 colon cancer diagnosis in October 2021.
“When I got sick, I think that a group of predatory investors saw a good opportunity to make a move on me and the leadership over at Cookies,” he said in the video.
Berner called the relationship between the company and its investors as a “loan-to-own” situation – the description used by other cannabis entrepreneurs who have lost control of their businesses after taking investments – and claimed the investors are “trying to starve (Cookies) out.”
“This playbook has been run on other people in this space,” he said. “And it’s worked. But it’s not going to work here.”
Last week, he also posted what appeared to be a dig at his former partners.
In a promotional photo for an upcoming music release, Berner is sitting at what appears to be a table at a corporate boardroom, surrounded by men in suits.
Visible on the table is a reflection of the suited men, who appear menacingly dressed in ski masks.
CRP’s Rock did not respond to a text message seeking comment. Nor did his attorneys at a Los Angeles-area office of Leech Tishman Fuscaldo & Lampl.
A message left for NedCo’s Fussell at a Santa Rosa, California, listing was not returned.
Attorneys at Irvine, California-based Rutan & Tucker, representing the Cookies investors, declined to comment.
Peek inside the company
In addition to painting their own inside picture of the Cookies empire, the suits claim to divulge key details about Cookies’ finances, though the whole picture remains incomplete.
What the public has come to know as “Cookies” is in fact a network of related companies, incorporated in California as well as corporate-friendly Delaware, all of which are closely tied to Berner’s immense presence on social media.
All these companies are privately held and not publicly traded – and, since the Cookies-branded cannabis stores are run by outside companies that license the brand and pay royalties to the outfits controlled by Berner, Berling and some of the other executives and board members named in the suits, they are practically non-plant-touching.
Outwardly, Cookies appears to have carefully guarded precise details about the company’s structure and operations while publicly presenting itself as a runaway success story.
Early last summer, Berner claimed in an interview with Insider that Cookies was a “definitely a billion-dollar company.”
Then, in August 2022, when Berner graced the cover of Forbes – the first cannabis company executive to do so – the business publication pegged Cookies’ actual worth at closer to $150 million.
Observers contacted by MJBizDaily said the lower figure could be possible, based on funding details contained in the investor lawsuit.
Silent raise
The lawsuits preceded a Series A financing round Cookies announced in April, led by Entourage Effect Capital, a Texas-based private equity firm that’s invested into other prominent cannabis companies, including Chicago-based multistate operator Green Thumb Industries.
Though no dollar figures were disclosed, Cookies claimed to have secured its “largest equity raise at the highest valuation” since its 2012 founding.
The ambiguity raised eyebrows among investors and observers, who told MJBizDaily that it’s unusual for a company to not advertise both its valuation as well as the amount of a capital raise.
Entourage Effect did not respond to an MJBizDaily request for comment, and a Cookies spokesperson refused to discuss details.
But in their suit, the two Cookies investors say the company secured at least $5 million in debt financing from Entourage Effect Capital Opportunity Fund III.
They also hinted at overall financial trouble at the company.
“This taking on of more debt is representative of Defendants’ reckless spending that is out of proportion with its ability to pay, which leaves the company and its shareholders in a precarious position,” the suit alleges.
Cookies also raised $23 million through a stock-purchase agreement in which it sold shares to a “number of investors … that are either unidentified or identified as yet more affiliates” of Berling, Berner and the management team, according to the investors‘ suit.
That diluted both the voting power as well as the investment of existing investors, who attempted to convert their stakes into preferred shares and were denied, the suit alleges.
Still Strong
Outside investors who reviewed the lawsuits told MJBizDaily that Cookies’ brand image – which is virtually unparalleled in cannabis for its combination of apparent business savvy and street-level authenticity – might be undamaged for now.
In an email, Matthew Karnes, founder of New York-based cannabis financial consultancy Greenwave Advisors, brushed off the lawsuits as a “distraction,” pointing to Entourage Effect’s investment as a sign the company is sound.
“I think they would’ve passed on the opportunity if they believed this lawsuit had any merit,” he said.
As for the company going forward, though the lawsuits and media coverage “may cause some investors to pause” or conduct additional due diligence, Cookies remains “a well known international brand that has unique characteristics and appeal,” Karnes added.
Jesse Redmond, a managing director and head of cannabis research at Santa Barbara, California-based Water Tower Research, noted that the allegations address Cookies management’s competency as well as their ethics – both red flags for most potential investors.
But despite that, the brand’s appeal remains unparalleled, which would explain why an investor might not worry too much about litigation.
“I think the reason people have invested and may continue to do so, even with the turmoil, is that Cookies might be the most recognizable brand in cannabis,” Redmond said.
“There are not many brands where people will line up around the block for drops, and Cookies is one of them.”
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
Agriculture & Life Sciences
Canada’s Cannabis Industry Urges Government to Support Growing Export Market
BuzzBuzz Cannabis Business News — 24 November 2025
Canada’s cannabis sector is calling on federal and provincial governments to recognize its fast-growing export potential and extend the same support other regulated industries receive. Industry leaders warn that Canada is losing its early global advantage due to slow regulatory processes, lack of trade promotion, and limited access to government-backed financing.
Canada’s medical-cannabis exporters now generate more than half a billion dollars annually and ship products to major markets including Germany, the UK, Australia, and Poland. Despite this, cannabis remains largely absent from Canada’s official trade and export strategies.
Industry Calls for Streamlined Export System
Paul McCarthy, President of the Cannabis Council of Canada, says the country has everything required to dominate the global medical cannabis trade—except government alignment.
“Our requests are simple,” McCarthy said. “Expedite Health Canada’s export-permit process, integrate cannabis into federal export programs like Global Affairs Canada trade missions and CanExport, and ensure provinces include cannabis in their export strategies.”
He stressed the need for mutual recognition agreements with importing countries to eliminate redundant testing and documentation. Access to Export Development Canada (EDC) and Business Development Bank of Canada (BDC) services also remains off-limits to cannabis exporters, placing them at a steep disadvantage.
“This industry does not just need permission to operate,” McCarthy added. “It needs to be treated like every other legitimate contributor to Canada’s trade objectives.”
Competitors Are Moving Faster
McCarthy warns that while Canada pioneered medical cannabis standards, other countries are rapidly advancing with more flexible and export-friendly systems.
“Faster approvals, lower compliance costs, and active government-backed strategies are helping other nations catch up,” he said. “Canada’s regulatory friction is already costing us global market share.”
Export permits currently must be issued for each shipment—a process that can take weeks—and Canadian testing standards often differ from international requirements, forcing companies to repeat expensive compliance checks.
High Tide CEO: Canada Needs a National Export Strategy
Raj Grover, CEO of High Tide Inc., says Canada risks surrendering its leadership if policymakers remain inactive.
“Canada developed the world’s most advanced cannabis regulatory system and contributed $76.5 billion to GDP since legalization,” Grover said. “But without a National Cannabis Export Strategy, we will lose ground to Australia, Israel, Portugal, and other emerging competitors.”
He noted that Canada’s industry table created by Innovation, Science and Economic Development Canada (ISED) has not met in more than a year—an opportunity wasted.
Grover urged the federal government to introduce domestic GMP certification and potency standards to streamline international market access. “Canadian producers must currently get GMP approval country by country. It’s duplicative and costly. Canada should be setting global benchmarks, not chasing them.”
Germany: A Key Market for Canadian Firms
High Tide recently expanded into Europe with its majority acquisition of Germany’s Remexian Pharma GmbH, giving the company a direct import and distribution channel in Europe’s largest medical-cannabis market.
“Our German strategy is already structured for success,” Grover said. “Through Remexian, we can supply premium medical cannabis at the lowest possible price, helping meet Germany’s quality and cost demands.”
Grover also warned that U.S. companies are already purchasing Canadian firms to stage their own international expansion—another sign that Canada’s leadership position is slipping.
Government Response Remains Limited
In response to industry concerns, a Global Affairs Canada spokesperson said the Trade Commissioner Service “continues to support exporters of cannabis for medical and scientific purposes that have obtained Health Canada permits.”
However, industry leaders argue that this support is minimal and does not include key tools such as trade missions, export credits, or bilateral agreements that other sectors routinely receive.
A Closing Window of Opportunity
With medical-cannabis exports already exceeding $500 million annually, industry executives say Canada must act quickly to preserve its competitive edge.
As McCarthy warns, without coordinated government support, Canada risks losing high-value pharmaceutical manufacturing, research investments, and thousands of skilled jobs.
And as Grover’s expansion into Germany demonstrates, the industry is moving forward—but whether Canada moves with it may determine if the country remains a global leader or becomes a pioneer that let others capitalize on its breakthroughs.
Business
A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social
When the President of the United States shares a video about the life changing potential of hemp derived CBD on his personal social media platform, it is more than news, it is a cultural shift.
For decades our government lied to us about cannabis. It demonized the plant, waged war on its users, and filled prisons while allowing pharmaceutical companies to flood the nation with addictive and deadly drugs. For over a century we have been fighting uphill, not just for legalization, but for truth, for science, and for the right to heal ourselves naturally.
Now in 2025, the most powerful political figure on Earth is using his own voice and platform to talk about the endocannabinoid system and the science backed benefits of CBD. That is monumental. It is validation for everyone who has fought, been arrested, been silenced, and been dismissed for telling this truth. The President’s video post is already being described as a pivotal moment in cannabis history, and President Trump CBD Cannabis Science Truth Social is trending across platforms as advocates celebrate the breakthrough.
The Science Behind the Endocannabinoid System
The video begins by introducing something most people, including many doctors, still know little about, the endocannabinoid system. Discovered in the 1990s, the ECS is a network of receptors and signaling molecules that works as the body’s master regulator, coordinating communication between major systems like the nervous, immune, cardiovascular, and digestive systems.
The roots of this discovery go back much further. CBD was first isolated in 1940 by American chemist Roger Adams, but it was Dr. Raphael Mechoulam, an Israeli organic chemist, who fully elucidated the chemical structure of CBD and identified its stereochemistry in the 1960s. His pioneering work not only opened the door to modern cannabinoid science but also earned him the title “Godfather of Cannabis Research.” It was this foundation that led to the identification of the endocannabinoid system itself decades later, revealing how cannabinoids interact with our physiology on a fundamental level.
The ECS is now widely recognized as a vital part of human biology, with extensive research supported by the National Institutes of Health. When functioning properly, the ECS acts like the conductor of an orchestra, ensuring every section plays in harmony. As we age, the system weakens. That imbalance is linked to inflammation, chronic pain, cognitive decline, sleep problems, and many other conditions associated with aging.
Mainstream medicine often addresses these issues with pharmaceutical band aids, dangerous and addictive drugs that treat symptoms rather than root causes. Lifestyle changes such as diet and exercise help, but they only partially support the ECS and do so slowly over time.
Hemp Derived CBD: A Game Changer for Aging
Here is where the science gets exciting. As the video explains, the ECS can be restored much more quickly with hemp derived CBD. Strengthening this system naturally helps the body regain balance, reducing pain, improving sleep, lowering stress, slowing disease progression, and even extending healthy lifespan.
It is not theoretical. One in five seniors is already using CBD to manage pain, arthritis, cancer symptoms, sleep disorders, Alzheimer’s, and more. Despite decades of research and acknowledgment from institutions like the National Institutes of Health, most physicians receive no training on the ECS. There are still no FDA standards for CBD products on the market. If that were the case for any other class of medicine, it would be considered malpractice.
The World Health Organization has confirmed CBD’s excellent safety profile and non addictive nature in its critical review report. The result is that millions of older Americans are suffering unnecessarily when a safe and natural solution exists.
Hemp derived CBD is a powerful first step in restoring balance to the endocannabinoid system, but it is only part of the picture. Research shows that full spectrum cannabis extracts, which include a broader range of cannabinoids and terpenes, can work even more effectively. Complete concentrated cannabis oil, containing the full spectrum of natural endocannabinoids, may deliver the most profound results for certain patients. Expanding access to these therapies will be essential if we want to unlock the full healing potential of this plant.
The Economic and Social Impact
The video cites a powerful figure. A PricewaterhouseCoopers analysis estimates that fully integrating cannabis into the healthcare system could save the United States nearly 64 billion dollars annually. These savings reflect reduced pharmaceutical dependency, fewer hospitalizations, improved chronic disease outcomes, and enhanced quality of life for aging Americans. You can read more about PwC’s research on healthcare innovation here.
It is a financial argument, but it is also a moral one. Why should our elders endure pain, anxiety, and cognitive decline when nature has given us tools to help them live longer, happier, and healthier lives?
A Call to Action: Finish What the Farm Bill Started
The message concludes by crediting the 2018 Farm Bill, championed by President Trump, for legalizing hemp and laying the groundwork for today’s CBD market. The Farm Bill was just the first step.
Now the call is for bold next moves.
- Educate doctors about the endocannabinoid system
- Include CBD under Medicare coverage
- Provide clear federal standards for CBD quality and dosing
These steps would constitute the most significant senior health reform in modern history, one that would transform aging and cement a powerful legacy for any administration that makes it happen.
What This Means for Future Cannabis Medicine
For those of us who have been in the cannabis community for decades, this is not just another news story. It is a signal that our movement is winning. A conversation that was once criminalized and censored is now being amplified by the President of the United States on his own platform.
It means the science is undeniable. It means the truth can no longer be buried. It means the wall of prohibition is cracking, not just legally, but culturally, scientifically, and politically.
It also means that everything we have been fighting for at 420 Magazine since 1993, education, access, healing, and justice, is finally moving full steam ahead. The President Trump CBD Cannabis Science Truth Social moment is proof that science and policy are finally converging.
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