AceShowbiz - Jay-Z's cannabis company has been dragged to court. Monogram, which was launched more than two years ago in partnership with Caliva, has been accused of smuggling weed and filing financial reports in a new lawsuit.

Filing the legal docs was Cathi Clay, the former president of The Parent Company (TPCO), which produces Monogram products. According to Lester Black for SF Gate, Cathi submitted the complaint to Santa Clara County Superior Court last month.

Cathi alleged that TPCO executives harassed and discriminated against her because she was a woman. They also allegedly went after her for exposing their actions, which reportedly included violating cannabis regulations and filing inaccurate financial reports.

The plaintiff claimed she once warned them that the 2021 and 2022 financial filings submitted to the SEC contains "outright inaccuracies in the financial records." She also accused TPCO executives of shipping marijuana from California "to New York for a Monogram event with Shawn Carter."

Although both New York and California have established legal markets, it is considered a federal felony to move cannabis across state lines. Also, the latter strictly restricts cannabis companies from shipping marijuana outside of the state.

Jay-Z, who announced the Monogram brand in 2020 and serves as the chief visionary officer for TCPO, has yet to officially respond to the lawsuit. However, a spokesperson for TPCO has denied Cathi's allegations. "The company does not comment on active litigation and plans to defend itself strongly against the false accusations," the spokesperson said.

Cathi's attorney then countered the claim. The lawyer insisted that they "have concrete irrefutable proof of each allegation in the Complaint," but they were "not comfortable sharing evidence at the early stage of this litigation."