Jay-Z’s cannabis company, Monogram, is facing serious accusations of weed smuggling and inaccurate financial reporting.
According to a report from Lester Black for SF Gate, Cathi Clay, the former president of The Parent Company (TPCO), which produces Monogram products, filed a lawsuit accusing TPCO of harassment and gender discrimination before going after her for exposing their alleged violations.
Clay claimed that TPCO violated cannabis regulations and filed inaccurate financial reports. However, she claimed that the executives eventually began to treat her worse. She said once she warned them that the 2021 and 2022 financial filings submitted to the SEC contain “outright inaccuracies in the financial records,” TPCO executives shipped marijuana illegally from California to New York for Jay-Z. Clay said TPCO executives shipped marijuana “to New York for a Monogram event with Shawn Carter.”
It is a federal felony to move cannabis across state lines, and California strictly restricts cannabis companies from shipping marijuana outside of the state. TPCO currently owns 11 retail stores with over 650 employees, per SEC.
So far, a representative for Jay-Z nor Roc Nation has issued a response to the lawsuit. However, a spokesperson for TPCO denied that Clay’s allegations contained any truth to them.
“The company does not comment on active litigation and plans to defend itself strongly against the false accusations,” the spokesperson said.
Jay-Z announced the Monogram brand in 2020, marking his first release since he partnered with Caliva the year before. The high-end cannabis company leaned heavily into hip-hop, as he tapped N.O.R.E., 2 Chainz, Curren$y, Tinashe, and more for its unveiling. However, Jay also used the company as a means to raise awareness surrounding outdated cannabis laws that have left many people incarcerated for years. The luxe brand boasts flower and pre-rolls that range from $40-$70.
What do you think about the allegations against Monogram? Leave your thoughts in the comments below.