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

Marijuana

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.

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Anti-Marijuana Group Opens in Arkansas, Opposes S.J.R. 13

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The group Smart Approaches to Marijuana (SAM) announced this week that it is launching operations in Arkansas.

SAM Arkansas’ website — samarkansas.com — offers Arkansans information about problems associated with marijuana, including:

  • The link between marijuana use and mental illness
  • The power that wealthy cannabis companies wield
  • The rising THC levels found in today’s marijuana

The SAM Arkansas strongly opposes S.J.R. 13 — a proposed constitutional amendment that would legalize marijuana in Arkansas — posting the following statement:

“Arkansans sent a clear message in 2022: they don’t want marijuana in their state. They recognized that legalization is nothing more than a way for rich investors to profit off of an addiction-for-profit model targeted at our kids. There is no appetite for yet another ballot measure trying to legalize marijuana in Arkansas,” said Luke Niforatos, Executive Vice President of SAM Action. “The home grow provisions of this bill are dangerous, too. Legalizing home grow only invites drug cartels into the state. Cartels can cut trafficking costs by producing marijuana in-state, putting the safety of Arkansans at serious risk.

“SJR 13 is an industry bill that, if passed, will hurt Arkansans. The voters of Arkansas already had to vote on the health and safety of their children last year when legalization was on the ballot. They should not have to do so again.”

Read more about SAM Arkansas’ work here.

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Proposed Constitutional Amendment Would Legalize Marijuana in Arkansas

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A proposal at the Arkansas Legislature would put marijuana legalization on the 2024 ballot.

S.J.R. 13 by Sen. Joshua Bryant (R – Rogers) would “legalize marijuana for the purposes of craft or home growing and adult use by Arkansas residents of a certain age.”

The proposal is a “shell” amendment right now — meaning it tells what the amendment would do, but has not been fleshed out with specific language amending the Arkansas Constitution.

Arkansans soundly rejected a proposal to legalize marijuana last November, and Family Council strongly opposes marijuana legalization because of the harm that marijuana does to families.

You Can Read S.J.R. 13 Here.

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