State Lawsuit Alleges Marijuana Company Misrepresented THC Levels in Vaping Product

A lawsuit filed in Arkansas’ Faulkner County Circuit Court in June alleges that marijuana businesses manufactured and sold vaping products whose THC levels were improperly labeled.

The lawsuit identifies J.W. Nguyen as an Arkansas resident who purchased a marijuana vape product marketed as being low in Delta-9 THC — the psychoactive chemical found in marijuana.

According to the lawsuit, marijuana products that are low in Delta-9 THC are permitted under federal law. The lawsuit claims that Nguyen later tested positive for Delta-9 THC after using the product, and it indicates that subsequent testing revealed the marijuana vape contained inappropriate levels of Delta-9 THC.

A photograph of the vape product’s label says the product “Contains Natural Hemp Extract.”

The lawsuit alleges that the mislabeling violates the federal RICO law, the Arkansas Deceptive Trade Practices Act, and the federal Magnuson-Moss Act.

This lawsuit filed in state court is separate from a federal RICO lawsuit brought against a group of marijuana businesses in July alleging the businesses conspired to mislabel THC levels in marijuana products.

Read the Lawsuit Filed in Faulkner County Circuit Court Here.

Marijuana Cultivators in Arkansas Face Class Action RICO Lawsuit

On July 12, three Arkansas residents filed a class action complaint in federal court in Little Rock against a group of medical marijuana cultivators and a marijuana testing company.

The complaint alleges that Natural State Medicinals (NSMC-OPCO LLC), Bold Team LLC, and Osage Creek Cultivation falsely labeled the marijuana they cultivated by overstating the amount of THC in their marijuana products.

The complaint also alleges that Steep Hill — a marijuana testing company — “routinely overstates the amount of THC in its [marijuana] flower” that it tests.

Arkansas’ medical marijuana amendment requires marijuana sold in the state to be tested. The complaint alleges that the defendants conspired to falsify the marijuana lab results.

The suit was filed under the Racketeer Influenced and Corrupt Organizations (RICO) Act, a federal anti-racketeering law, and it requests a trial by jury in the case.

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

According to reports filed with the Arkansas Ethics Commission, Bold Team LLC and Osage Creek Cultivators have donated $700,000 each toward the campaign to legalize marijuana in Arkansas. Natural State Medicinals has donated $350,000.

Read the Class Action RICO Complaint Here.