Two lawsuits were filed in Los Angeles County Superior Court, alleging that Cookies’ President Parker Berling and other board members and executives pocketed “kickbacks” which include cash, jewelry, and other gifts. This “hidden forced private tax,” in the words of one suit, is levied on anyone wishing to do business with California-based Cookies.
While many investors may worry about damages, the brand’s appeal remains unparalleled, and thus the Cookies brand might be undamaged for now. The CEO and Co-founder denied commenting on the matter, and throughout the years, Cookies has carefully guarded precise details about the company’s structure and operations while publicly presenting itself as a runaway success story.
In my opinion, it is a shame that investors have to endure these tactics just to do business with a popular brand. It is inspiring, however, that despite these behaviors, the Cookies brand continues to attract investors and consumer loyalty.