FDA’s Most Recent Hire Could Lead to CBD RegulationPosted by On


In July 2022, plaintiffs purporting to represent every medical marijuana patient in Arkansas filed a lawsuit against a cannabis testing company, a group of cannabis cultivation facilities, and John Does who are “the law firms, accountants and financial entities who have assisted Defendants,” according to the suit. The complaint alleges that the defendants conspired to sell underdosed cannabis products at premium prices. The plaintiffs asserted their claim under the federal Racketeer Influenced and Corrupt Organizations Act (RICO), a type of specialized anti-conspiracy statute that provides criminal penalties for acts performed as part of an ongoing criminal organization.

While somewhat different than prior cases, this lawsuit is not the first time plaintiffs across the U.S. have tried to deploy the RICO statute against the state-legal cannabis industry. 

RICO cases against cannabis businesses share broadly similar facts. The plaintiffs typically reside in the vicinity of a cannabis cultivation operation and generally oppose cannabis legalization, then sue a group of businesses and individuals involved in a neighboring cannabis business. The plaintiffs allege that those involved in the cannabis business are engaged in a criminal enterprise to violate the Controlled Substances Act (CSA) by cultivating and selling cannabis.

For members of the state-legal cannabis industry—and their investors, advisors and other purported “co-conspirators”—this trend…

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