Contributor: Asia Mayfield
A Las Vegas dispensary plagued by fraud accusations is now battling its own employees. Multiple current and former Canopi workers have filed lawsuits alleging lack of pay and lapses in their health insurance.
“I’m about to lose my car. I can’t pay rent. I can’t pay medications, doctors’ fees. I don’t have money to do anything. I don’t have gas in my car. I don’t have food in my fridge,” former employee Ruby Gonzales told a local news team.
Canopi, the dispensary arm of CWNevada, was slapped with six separate lawsuits last September. Investors and lenders accuse the company of neglecting to pay its bills, misappropriating intellectual property, and fraud.
“While local and national media outlets report on the unprecedented success of Nevada’s regulated marijuana market, CWNevada, LLC’s management has managed to run the business into the ground,’’ reads one of the lawsuits.
“Despite having substantial capital investment from Plaintiffs and otherwise, and the market advantage of holding privileged licenses… CWNevada has failed to turn a profit.”
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CWNevada filed for bankruptcy in April. However, the case was thrown out by a federal judge. Court records show that the company owed at least $500,000 in back taxes and rent. The bankruptcy filing came after a separate court demanded CWNevada pay $4.9 million to consultancy group 4Front Advisors.
The troubled company operates three dispensaries in Clark County. Each one is currently shut down. However, as of June 26, www.canopi.com still functions. The website does not mention the dispensaries are closed.
Canopi is managed by local attorney Brian Padgett.
“I’d like to see Brian in an orange jumpsuit going to prison,” said former employee Noemie Derval. “There’s a reason why there’s seven to eight lawsuits against him. There’s a reason why he’s battling his partners… I have no sympathy for him.”
Padgett denies the workers’ claims.
“What we’re doing right now is I have a company of over 125 employees that we haven’t made a single cut in pay on. That we have not laid people off and we are continuing to pay each and every one of them,” he explained.
“We might be slow… And even though it hurts, even though I may bleed, I’m not leaving those people by the side of the road.”
Canopi’s future is uncertain. The company is now responsible for repaying its debts after a judge tossed out its bankruptcy filing. However, it’s not clear when those debts will be paid.
“We’re like, where’s our money? Why haven’t we paid these vendors from last year? Why have we not paid our rent? Why haven’t we paid our employees? So, a lot of questions pop up. There’s really no real answer,” said former employee Gregg Grant.
The Nevada Department of Taxation suspended Canopi’s marijuana licenses for its North Las Vegas and downtown dispensaries last Spring. The licensing status of its Southwest location is unknown. All three locations are closed for business.
It’s just as well.
I went to their North Las Vegas location. Once.
That was all I needed. Poor selection. Employees were not well-trained or informed. Long wait in the lobby to get in.
There’s plenty of competition for all the dispensary customers in the Las Vegas area. Some companies rise to the top, which means some have to settle at the bottom.