 A lawsuit that was filed in Arkansas last month may lead to the ending of the medical cannabis program in that state.
The situation began with the plaintiffs who were suspicious that THC levels of some cannabis were not accurate according to the labels. The plaintiffs had products independently tested for THC levels and found results had been inflated by an average of 25%. Higher THC levels can be sold for higher prices, so consistently marking up the THC levels would lead to higher sales revenue than would be generated if labeled accurately. The plaintiffs then filed their lawsuit, which alleges that multiple cannabis producers conspired to show inflated THC levels on products, which is a violation of the RICO Act, which stands for Racketeer Influenced and Corupt Organizations Act. The plaintiffs ask in their petition that the courts stop the defendents, “from continuing to engage in racketeering activities to enforce strong federal policy that seeks to reduce the cultivation and distribution of medical marijuana through a complete prohibition on those activities.” Legal analysts say this could potentially lead to the medical marijuana program being scrapped in the state. Arkansas has just reported $23 million in sales for the month of June. Comments are closed.
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