Ohio AG Targets Alleged Cannabis Cartels

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  • Ohio AG Dave Yost filed a lawsuit against nine multistate cannabis operators for allegedly violating Ohio’s Valentine Act by entering into reciprocal supply deals that allegedly suppress competition.
  • According to the complaint, the defendants allegedly formed “cartels” to keep independent Ohio cultivators’ and processors’ products off dispensary shelves through quid pro quo purchasing quotas and shelf-space allotments negotiated at a national level.
  • The complaint further alleges the defendants exchanged competitively sensitive, non-public information—such as promotional schedules and retail discounts—to coordinate allocation arrangements that allegedly shut out independent Ohio cultivators and processors.
  • Ohio seeks a permanent injunction, statutory civil forfeitures of $500 per day per defendant for each day the alleged combinations were in effect, and attorneys’ fees, costs, and interest, among other relief.
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