RICO Suit Filed Regarding Alleged Inflation of THC Amounts in Medical Cannabis Products

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A class-action lawsuit was filed on July 12 in the U.S. District Court for the Eastern District of Arkansas alleging that cannabis testing companies inflated the amount of THC found in cannabis flower. Plaintiffs are a putative class of medical cannabis patients in Arkansas and bring suit under the Racketeer Influenced and Corrupt Organizations (RICO) Act. Plaintiffs allege that products with higher levels of THC cost more for patients, providing an incentive for test results to show a higher level than is actually present in the products. Plaintiffs further assert that they had the products tested by another lab, and the original THC results were overstated by an average of 25%.   

This Arkansas suit is the latest in a string of RICO suits in state-legal cannabis markets. While the number of such suits has grown in recent years, their success has been minimal to date.

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