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‘Cake’ Cannabis Vape Co-Founder Stole Secrets, Cash, Suit Says

June 7, 2021, 8:17 PM

A manufacturer of cannabis vaping products, including the popular “Cake” brand, filed suit in Delaware on Monday against one of its founders, claiming he took bribes, sold product “off a warehouse loading dock,” and built a competing business using trade secrets.

The lawsuit alleges wide-ranging misconduct by Peter Amato, a WM Wholesale LLC co-founder. Cake, the company’s flagship brand, contains delta-8 THC, a lightly regulated cannabis derivative that’s facing increasing scrutiny because it gives users a marijuana-like high.

The suit, filed in Delaware Chancery Court, centers on accusations that Amato took cash kickbacks from distributors in exchange for bogus last-minute ...

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