Arkansas Marijuana Companies Slapped With Racketeering LawsuitPosted by On

Four Arkansas medical marijuana companies face litigation under federal racketeering laws after a group of medicinal cannabis patients filed a lawsuit against the businesses last month. The legal action, filed in U.S. district court in Little Rock on July 12, alleges that Arkansas’ medical marijuana cultivators colluded with testing labs to artificially inflate THC potency test results. The suit seeks an injunction to shut down the state’s medical cannabis industry under the federal Racketeer Influenced and Corrupt Organizations Act.

Attorney Luther O. Sutter filed the lawsuit on behalf of three medical marijuana patients. The suit accuses cannabis cultivators Bold Team LLC, Natural State Medicinal Cultivation and Osage Creek Cultivation LLC of fraud for selling cannabis with lower THC potency than advertised.

Steep Hill Inc. of Berkeley, California, and Steep Hill Arkansas of Little Rock are also named as defendants and are accused of reporting artificially high THC readings for cannabis sold to patients. The lawsuit also names Steep Hill Arkansas owners Brent Whittington and Brandon Thornton as defendants, alleging they conspired with growers to defraud patients by selling them marijuana with less THC than indicated by test results.

“The net effect is to defraud the Plaintiff and putative clause by over-representing the amount of THC in flower to the detriment of the Plaintiff and Class so that Steep Hill, the cultivators, and the dispensaries can make more…

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