In Arkansas, Four Cannabis Companies Are Accused of THC Inflation
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Three cannabis cultivation companies and one testing lab are facing a class action lawsuit in Arkansas. The allegation? That all four conspired to defraud medical cannabis patients by inflating cannabis potency testing results.
The lawsuit was filed on July 12 by three medical cannabis patients, after they noticed “that some marijuana was more potent than others, despite being labeled as having similar amounts of THC,” according to the lawsuit that was first reported by Law360.
The four affected companies are the cultivators Bold, Osage Creek Cultivation, and Natural State Medicinals, and the testing lab Steep Hill Arkansas, which is a subsidiary of Steep Hill Inc.
“Each Defendant has conducted or participated in the conduct of the affairs of Osage, NSM AND BOLD through a pattern of racketeering activity,” the lawsuit reads.
The RICO lawsuit says that the four companies were aware that cannabis products with higher THC levels could command higher prices. With this knowledge, the suit alleges, the companies colluded to artificially raise the THC potencies of certain products to sell to medical cannabis patients.
“The racketeering activities of Defendants directly and proximately injured the Plaintiff and the Class’ property by selling them Regular marijuana for a much higher Premium price,” the suit continues.
Analytical Cannabis has reached out to all four affected companies for comment.