2 Chainz’s $10 Million Lawsuit Against Pineapple Express: A Cannabis Scam Exposed

By Jason Beck

June 20. 2025

Grammy-winning rapper 2 Chainz (Tauheed K. Epps) is locked in a high-stakes legal battle against Los Angeles’ Pineapple Express dispensary, accusing its operators of a $1.5 million fraud that has sent shockwaves through the $32 billion cannabis industry. Filed in August 2024, the explosive lawsuit alleges fraud, breach of contract, and theft, seeking over $10 million in damages. Drawing on 2 Chainz’s candid June 2025 YouTube interview with Shannon Sharp on Club Shay Shay, alongside a tangle of related lawsuits, this saga lays bare the risks lurking in cannabis investments.

A Deal That Went Up in Smoke

In early 2021, 2 Chainz, through his company Antimatter Holdings LLC, invested $1.5 million in Pineapple Express, a dispensary on Hollywood’s Santa Monica Boulevard. The deal, pitched by Snoop Dogg’s tour manager, Damien Roderick AKA Big Persy, seemed like a sure bet. “I thought it was a solid play, cannabis was hot, and they had big names attached,” 2 Chainz revealed in his June 2025 interview. The agreement, signed with operators Vincent Mehdizadeh (aka Zadeh), Shawn Credle, and Matthew Feinstein, promised a $1 million upfront payment, $500,000 in follow-up funds, monthly dividends, and a “put right” clause guaranteeing a 110% return on investment within 30 days’ notice. The dispensary was slated to open in April 2021, with profits to follow swiftly.

Instead, the deal unraveled. The store’s opening was delayed until March 2022, nearly a year late. “They kept feeding me excuses—licensing, construction, you name it,” 2 Chainz said in the interview, his frustration palpable. Despite claims of 50% profit margins, no dividends were paid. When Antimatter exercised the put clause in May 2022, the operators went silent. By December 2022, Zadeh texted 2 Chainz’s team, flat-out refusing to honor the agreement. “It felt like a setup from the jump,” 2 Chainz told the interviewer, describing how the operators exploited his investment and celebrity status. The lawsuit calls it what it is: “a scam from day one.”

The Lawsuit: A $10.65 Million Fight for Justice

Filed in Los Angeles Superior Court, the 41-page lawsuit demands $1.65 million (the investment plus guaranteed return), $4.5 million in punitive damages, $4.5 million in treble damages under California Penal Code §496(c) for theft, and legal fees. It levels serious charges:

• Fraudulent inducement: Misleading 2 Chainz with false timelines and financial projections to secure his investment.

• Breach of contract: Failing to honor the put clause and dividend commitments.

• Unjust enrichment: Using 2 Chainz’s funds and fame to profit without repayment.

• Theft: Illegally withholding his investment.

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The suit reveals a shady financial structure: Pineapple Ventures, Inc., not PNPLXPRESS (where 2 Chainz held equity), controlled the lease and charged inflated subleasing rates. Ventures also allegedly siphoned 10% of gross revenues as hidden fees. “My money built their store, but the profits went to their pockets,” 2 Chainz stated in court filings, a sentiment he echoed in the interview. “They used my name to hype their brand, but I didn’t see a dime back,” he said, underscoring how his celebrity was leveraged to attract other investors.

Pineapple’s Defense and a Web of Legal Troubles

Pineapple Express insists the dispute should be resolved in arbitration, citing a contract clause. “We hope to resolve the issue amicably,” Matthew Feinstein said through a spokesperson, expressing appreciation for 2 Chainz’s partnership while deflecting blame. Feinstein attributed delays to “licensing and restructuring issues” and mentioned a temporary August 2024 closure to transition to a social equity partner, with a relaunch planned for September 2025. Zadeh’s attorney, Andrew Holmes, dismissed the lawsuit as “sensationalized” by “opportunistic lawyers.”

Yet, 2 Chainz is not alone in his grievances. Court records show 14 other investors, including Catherine Kleve, who lost $500,000, have filed similar fraud lawsuits against Pineapple Express. A receiver’s report uncovered $1.69 million in unpaid taxes and missing tax filings, pointing to financial disarray. In 2023, a landlord sued Pineapple for $2.3 million in unpaid rent, and a 2024 class-action suit by minority shareholders accused Mehdizadeh of diverting funds to personal ventures. Web searches reveal Pineapple’s website is down, and its social media has been inactive since July 2024, fueling doubts about its viability.

Legal Context and Industry Implications

The case unfolds in California’s $5.9 billion cannabis market (CDTFA, 2024), where 74% of Americans live in states with legal cannabis (Pew Research, 2024) and 70% support legalization (Gallup, 2024). If arbitration is enforced, it could delay or conceal the dispute, but 2 Chainz’s legal team is pushing for a public trial, leveraging California’s robust consumer fraud laws. The theft charge, with its treble damages, could set a precedent for celebrity investors duped in cannabis ventures. Comparable cases, like a 2022 San Diego dispensary sued for defrauding investors, suggest courts may side with plaintiffs if fraud is proven, though arbitration clauses often muddy the waters. Pineapple’s mounting legal and financial woes weaken its position, but arbitration may limit public scrutiny.

A Cautionary Tale for Cannabis Investors

In his June 2025 interview, 2 Chainz framed the lawsuit as a personal and public mission. “I’m fighting for what’s mine, but this is bigger—nobody should get burned like this,” he said, urging aspiring investors to scrutinize deals. “Do your homework, get everything in writing, and don’t trust big names alone,” he advised, reflecting on how the promise of Snoop Dogg’s involvement clouded his judgment. His words resonate as Pineapple Express faces a barrage of lawsuits, exposing systemic issues in the cannabis industry.

This case is a stark reminder of the risks in the $32 billion cannabis boom. Without transparency, airtight contracts, and rigorous oversight, green dreams can quickly turn to ash. As 2 Chainz’s fight heads to court, or arbitration as the industry watches closely.

By Jason Beck