Entrepreneurs in the New Zealand cannabis scene have become involved in an ugly legal dispute that has seen accusations fly from both ends.

Mark Scapens and Murray McBride, the founders of cannabis company Eqalis Group, are considering legal action against prolific cannabis entrepreneur Ross Smith for alleged defamatory statements made in a series of emails.

"Our clients believe that Ross has made the statements to you and others with the sole and willful purpose of bringing our clients' reputations into disrepute and to that end causing as much damage as possible to Eqalis' goodwill, reputation and business," said legal counsel