Dovel & Luner law firm filed a class action suit in October against DreamFields Inc. and Med for America Inc., which make, sell and market the “Jeeter” brand of pre-rolls, on behalf of Jasper Centeno and Blake Wilson from California who purchased cannabis products with inaccurate THC content labels.
In their complaint, plaintiffs asserted the following causes of action: violation of the Unfair Competition Law, violation of the False Advertising Law, violation of the Consumer Legal Remedies Act, breach of express warranty, negligent misrepresentation, intentional misrepresentation and unjust enrichment.
The lawsuit states, “Consumers reasonably believe that they are receiving a product that has the THC content that is listed on the label.” The complaint alleges that the Jeeter products, however, substantially overstate the amount of actual THC in the product, sometimes by “70-100%.”
The defendants moved to dismiss the case, however, on June 15th the court held that all of claims except the unjust enrichment claim were sufficiently pled. As plaintiffs stated they will not file a first amended complaint, defendants must file and serve an answer by July 17, 2023.
Cannabis Companies And Litigations
Suing cannabis companies seems to be on the rise and it looks like the trend is only warming up.
-
In June, SpringBig Inc. (NASDAQ:SBIG) was sued by Kind+ Inc., a Massachusetts-based cannabis subscription service, for allegedly using its partnership to create a competing business.
-
In May, Tilray Brands (NASDAQ:TLRY) was sued by Docklight Brands Inc. for dropping out of the Bob Marley cannabis products licensing deal.
-
In March, toy company Toys “R” Us filed a lawsuit against cannabis retailer Zaza R Us for violations of state and federal intellectual property laws, including trademark dilution and infringement.
-
In January, Dovel & Luner filed a class action lawsuit against Lowell Farms Inc. (OTCQX:LOWLF) and Cypress Manufacturing Company on behalf of California consumers who purchased cannabis products with inaccurate THC content labels.
-
In December, Dovel & Luner filed a lawsuit against Ironworks Collective Inc. and Stiiizy LLC, and a similar lawsuit against VO Leasing Corp.
-
In November, George Engers, former COO of California-based cannabis company Top Shelf filed a lawsuit alleging whistleblower retaliation, wrongful termination, fraud, breach of contract and more.
Photo: Benzinga edit with photos by AJEL and lindsayfox on Pixabay