Arkansas Medical Marijuana Companies Face Lawsuit Over Labeling, THC Levels in Product

A new lawsuit alleges that a medical marijuana testing company conspired with other members of the marijuana industry to falsely label marijuana products.

The plaintiff in the lawsuit — a self-identified elderly, chronic pain patient — filed a complaint in Pulaski County Circuit Court on February 23 against marijuana testing company Steep Hill Arkansas and marijuana cultivators Bold Team LLC, Natural State Medicinal, and Osage Creek LLC.

Arkansas’ medical marijuana amendment requires marijuana sold in the state to be tested. However, it does not provide for clear regulation or oversight of the laboratory testing process.

The lawsuit alleges that the companies colluded to mislabel medical marijuana products and lead consumers to believe that the marijuana contained more THC than it actually did.

This is at least the second lawsuit against Steep Hill, Natural State Medicinal, Bold Team LLC, and Osage Creek over their testing and labeling practices.

Last July three Arkansas residents filed a class action lawsuit in federal court against the companies, claiming they falsely labeled the marijuana they cultivated by overstating the amount of THC in their marijuana products. Since then the plaintiffs have asked the court to dismiss the lawsuit.

The plaintiff in the suit filed in Pulaski County appears to have previously been a plaintiff in the federal lawsuit filed last year.

In 2018 the state’s Medical Marijuana Commission authorized Natural State Medicinal, Bold Team LLC, and Osage Creek to grow marijuana in Arkansas.

Besides being prominent members of the medical marijuana industry, Natural State Medicinal, Bold Team, and Osage Creek have supported recreational marijuana legalization in Arkansas.

According to reports filed with the Arkansas Ethics Commission, Bold Team LLC donated $2.2 million toward the campaign to pass marijuana amendment Issue 4 in 2022, while Osage Creak donated $2 million, and Natural State Medicinal donated $700,000.

On November 8, 2022, voters in Arkansas soundly rejected Issue 4, the proposed marijuana amendment, despite the fact that the group supporting it spent more than $14.2 million on the campaign to pass the measure.

Read the Complaint Filed in Pulaski County Circuit Court Here.