California Cannabis Retailers Sue Over Alleged Delta-9 THC Violations By Illegal Competitors

A group of cannabis companies in San Diego County has initiated legal action against rival dispensaries and manufacturers, alleging the sale of chemically synthesized marijuana products that contravene state laws.

According to The San Diego Union-Tribune, the plaintiffs argue that these businesses are deliberately evading the state's cannabis regulations by producing hemp-based products with elevated levels of delta-9 THC.

See Also: California Update: Governor Newsom Approves Latest Cannabis Legislation

About The Lawsuit

  • The lawsuit seeks to address a perceived enforcement gap by state and federal regulators. The plaintiffs contend that these illegal products are undermining licensed cannabis retailers in the state, potentially jeopardizing the legal industry's stability.
  • The legal complaint draws a direct correlation between the proliferation of illegal designer drugs in California and the decline of the legal cannabis sector. It names ten companies allegedly involved in producing or selling marijuana products that do not comply with state or federal guidelines.
  • It asks to block future sales of these illegal products and “for many millions of dollars in civil penalties and fines.”

Defendants have not responded to the allegations, with no legal representation listed in the court file. Additionally, the lawsuit identifies up to 1,000 unnamed defendants who may be operating in violation of state law.

The primary concern of the lawsuit centers on an interpretation of the language within the Agriculture Improvement Act of 2018, also known as the 2018 Farm Bill.

Read the full story HERE at The San Diego Union-Tribune

Read Next: 26% Of Hemp Delta-9 THC Products Are Actually Made From Marijuana, New Study Suggests

Image by El Planteo

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisGovernmentNewsRegulationsLegalMarkets2018 Farm BillCaliforniaCalifornia cannabis retailersCannabis in CaliforniaDelta-9 THCGovernor NewsomSan Diego CountyThe San Diego Union-Tribune
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.