Cannabis Co. Pays $128M Fine For Illegally Producing Millions Of Pot Gummies In LA

A California cannabis producer has to pay $128 million to the state for the illegal production of millions of cannabis gummies, following a Los Angeles judge’s ruling.

According to SFGate, Vertical Bliss — the makers of Kushy Punch gummies — manufactured millions of dollars worth of marijuana products at an unlicensed facility in Los Angeles. The fine may be the biggest one ever paid for the cannabis industry in the Golden State.

“I would be surprised if there was a judgment bigger than this — I’ve never seen it in my practice,” Jennifer Fisher, a San Francisco attorney, focused on the cannabis industry, told SF Gate.

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California regulators alleged Vertical Bliss of manufacturing and distributing $64 million worth of infused gummies (3.3 million). The investigation began in October 2019.

Vertical Bliss’ licenses were revoked shortly after. The state filed a civil lawsuit against the brand and its executives in September 2020.

Kushy Punch Wrongful Death Suit

Later that year, Kushy Punch made headlines yet again when the parents of Le’Sharia Bre’aun Steele, who died in October 2018 after allegedly eating the Kushy Punch gummies she purchased from a San Diego dispensary, filed a lawsuit on Oct. 20 in California state court.

“Contrary to defendants’ misrepresentations,” the suit states, the gummies took Steele’s life “after she ingested them and experienced acute severe symptoms that lasted for hours, including cardiovascular, respiratory, psychiatric, and dysphoric symptoms that manifested as uncontrollable movements, terrifying heart racing, trouble breathing, and mental and physical uncharacteristic outbursts and severe panic attacks.”

The Kushy Punch gummies allegedly contained ethanol, butane and other solvents, including acetonitrile, which is used to make "pharmaceuticals, perfumes, rubber products, pesticides, acrylic nail removers, and batteries,” the suit reads.

Photo: Courtesy of succo, mrkukuruznik5 by Pixabay