DoorDash and Total Wine, as well as several other companies are being sued by a subsidiary of an international marijuana company for violating Virginia hemp law by selling cannabis products with THC levels above the limit.
According to the lawsuit, filed in Virginia Circuit Court of Arlington County by Jushi Holdings Inc. and Dalitso LLC on Wednesday afternoon, defendants are accused of a “deliberate coordinated plan” designed to undermine Virginia’s tightly regulated medical cannabis industry through sales of intoxicating products containing cannabinoids that break state laws.
“Disguised as lawful ‘hemp,’ these products are, in reality, potent and dangerous forms of marijuana, offered without the mandatory safeguards, testing, or oversight that the Commonwealth imposes on licensed cannabis operators such as Plaintiff,” the complaint says. Through this deception, defendants have inundated Virginia’s market with illegal and unregulated cannabis products. They exploited consumer confusion, and violated Virginia’s state laws to gain an unfair competitive advantage.
In the filing, the author traces the evolution of cannabis legislation that has led to the growth of the hemp-based products market. This includes the legalization by the US government of hemp with up to 0.3% delta-9 THC in dry weight as part of the 2018 Farm Bill. Virginia then implemented their own law in 2023 imposing further restrictions on the products that can be sold legally, including a requirement of 2 milligrams THC per pack.
“However, despite Virginia’s efforts to establish its Total THC standard available for purchase outside of authorized dispensaries, Defendants to this lawsuit engaged in a conspiracy to sell hemp products and industrial hemp extracts in Virginia that exceed the Commonwealth’s Total THC standard,” the lawsuit—which also lists Grayscale Brewing, Specialty Beverage and Coastalo as defendants—says.
Virginia’s medical cannabis program is directly affected by the illegal products flooding into the unregulated channels of retail. Plaintiffs and other licensed dispensaries are subject to strict supervision, have substantial operating and licensing fees and must comply with stringent testing, packaging and tracking requirements. The intoxicating hemp seller, however, is not responsible for any of the above costs and obligations. They compete to attract customers with untested intoxicants that are unregulated.
Jushi has asked the court to hold a trial by jury in order to resolve the matter. It is also seeking from the defendants more than 80 million dollars for the economic damage allegedly caused due the unfair competition advantage.
MEDCAN24 contacted each defendant, but the representatives weren’t immediately available for comment.
DoorDash is one of the best-known defendants. In January, it announced that in certain states, they would be expanding their offerings to include products derived from hemp, such as gummies, CBD, and drinks. At the time, it said that they were partnering with companies such as Total Wine.
The lawsuit is still being viewed by both consumers and activists. Some may see it as an effort to eliminate competition, by eliminating the source for cannabis products on which some people have become dependent, while Virginia continues not to allow the sale of recreational marijuana. However, the possession of recreational marijuana in Virginia remains legal.
Jushi, on the other hand, believes that the suit is needed to even the playing field, and stop what it sees as unfair practices which undermine its medical marijuana operations.
Trent Woloveck said, “The goal of Jushi is to not remove any products which follow the Virginia laws.”
“We must ensure that those businesses who want to remain in the cannabis business do so under conditions that are allowed. This will allow us to achieve our ultimate goal, which is to normalize this plant. He told MEDCAN24 that if companies want to keep short-cutting the process we would be able to expose them. These sellers sell intoxicating THC without the same oversight, licensing or tax burdens that licensed cannabis companies bear. They should be very careful to follow the law.
Woloveck stated that “as far as patients and consumers are concerned, we have received overwhelmingly positive feedback and support in our battle for public safety and health.” The unregulated and legal marijuana products masquerading as hemp has created significant problems for those who are pushing for real reforms in the cannabis industry. Hemp-derived products have rarely been tested (if at all) with the same vigor that licensed cannabis companies require.
Use and possession of adult-use marijuana has been legal in Virginia since 2021, but retail sales remain forbidden—a situation that’s helped fuel a multibillion-dollar illicit market. Despite efforts by Democrats in past years to legalize and regulate the retail system, Gov. Glenn Youngkin has been a barrier to reform. He’s vetoed proposals from lawmakers in each of the past two legislative sessions.
The results of the gubernatorial elections next month will determine the outcome of the legislative effort. Democrat Abigail Spanberger is in favor of the reform while Republican Winsom Ahears opposed it. They clashed at a debate recently.
The hemp industry tried to stop Virginia’s enforcement of the law prohibiting intoxicating cannabis cannabinoids in 2023. However, a federal court rejected this legal challenge.
This is all happening as Congresses and state legislatures around the nation grapple with hemp laws. A growing number are making efforts to ban or regulate strictly the sale of cannabinoid-intoxicating products.
The bipartisan coalition made up of 39 Attorneys General from states and territories demanded that Congress clarify its federal definition of hemp, and to enact regulations prohibiting the sale such products.
GOP senators are hoping to change a ban on hemp-derived THC into alternative language that would mandate the study of state regulations for consuming cannabinoids. Rand Paul (R) has circulated legislative language which he is asking be included in the final package.
The Senate’s agriculture funding measure, which was part of an overall package passed in the summer, initially included provisions that hemp industry representatives said were intended to effectively wipe out the market. These provisions prohibited hemp-based products that contained any amount of THC. Paul, who threatened to block its passage after it was passed by the committee, removed the provision.
Sen. Mitch McConnell (R-KY), who ushered in the federal legalization of hemp under the 2018 Farm Bill, championed the THC criminalization language and took to the floor to criticize those who opposed the ban, including Paul.
Meanwhile, Paul recently filed a standalone bill that would go in the opposite direction of the hemp ban, proposing to triple the concentration of THC that the crop could legally contain, while addressing multiple other concerns the industry has expressed about federal regulations.
In June, the senator presented the Hemp Economic Mobilization Plan Act (HEMP). It mirrors versions he’s sponsored over the last several sessions.
Target, a retail giant in Minnesota, has begun to sell THC-infused drinks at some of its stores.
Please read below the Virginia suit over alleged illicit cannabis sales.
Philip Steffan is the photographer.