CNS News– In a significant legal development, a prominent California-based cannabis brand finds itself embroiled in a lawsuit in Georgia over the sale of marijuana vape pens. The lawsuit, which is a class-action suit, targets Cookies and Stiiizy, two leading Californian cannabis brands, along with nine other entities.
The plaintiffs allege that these companies have violated federal statutes by marketing marijuana vape pens in the state, demanding a hefty sum of $150 million in compensatory damages. The crux of the matter lies in the legislative changes made in 2018 that federally decriminalized hemp, leading to a nuanced distinction between hemp and marijuana that remains contentious.
This change introduced a category of “hemp-derived intoxicants,” including products like Delta-8-THC and THCA cannabis products, even in regions where marijuana remains illegal. California companies such as Cookies have been capitalizing on this legal ambiguity by openly promoting the shipping of THCA cannabis to consumers in states with strict marijuana laws.
Similarly, Stiiizy faces allegations for its sale of Delta-8-THC hemp vape pens in Georgia. The lawsuit underscores the legal risks involved in such operations, especially as the federal government has remained silent on interstate cannabis commerce, leaving room for civil lawsuits like the one in Georgia to emerge as a means of legal recourse.
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Despite inquiries, Cookies has refrained from commenting on the ongoing legal proceedings. In contrast, Stiiizy has vehemently denied the accusations, asserting its readiness to contest the charges in court. Legal experts speculate that the absence of federal regulation on hemp-derived cannabinoids might be prompting such legal actions.
The lawsuit leverages the RICO statutes, originally designed to combat organized crime, highlighting the complexities of pursuing cases in this evolving legal landscape. This case exemplifies the challenges facing the cannabis industry as it navigates the fine line between innovation and compliance with evolving legal and regulatory frameworks.