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In an effort to halt the proliferation of unregulated intoxicating hemp-derived THC products and save a $2 billion annual MMJ market, a major marijuana multistate operator is going to the courts.
In a lawsuit filed Tuesday in state court in Pennsylvania, subsidiaries of Boca Raton, Florida-based Jushi Holdings allege that the flow of “illegal products into unregulated retail channels directly undermines the Commonwealth’s regulated medical marijuana program,” according to the Philadelphia Inquirer.
Sales of medical cannabis in Pennsylvania are projected to reach as much as $2.1 billion in 2025, according to the MJBiz Factbook.
However, unlicensed competition from hemp-derived THC threatens that market, the lawsuit claims.
Marijuana MSO suing hemp companies for public safety
In an interview Thursday, Trent Woloveck, Jushi’s chief strategy director, said the issue is a matter of public health and safety.
So-called “gas station weed” sold under the guise of federal Farm Bill protections often contains toxic levels of pesticides, mold and other contaminants, he said.
“We’re not going to stand idly by and let people sell tainted product,” Woloveck told MJBizDaily.
The lawsuit names 10 distribution companies and online retailers based in California, Florida, Maryland and Texas as well as Pennsylvania, the Inquirer reported.
In Pennsylvania and in other states, these companies are abusing hemp laws to sell products that nearly all consumers would recognize as marijuana, the lawsuit alleges.
Pennsylvania adult-use marijuana legalization roadblock
They’re able to do this thanks to both ongoing confusion caused by the Farm Bill – which, federal lawmakers acknowledge, was never intended to legalize intoxicating products – as well as lax enforcement on the state level.
The situation is further complicated by Pennsylvania’s cannabis laws.
Lawmakers have debated adult-use legalization for years, but a partisan deadlock led by Republican state lawmakers has stymied legal cannabis.
Pennsylvania has also not yet followed the lead of other states and cracked down on intoxicating hemp THC products.
Publicly traded Jushi, which reported operating 40 stores in seven states, announced a loss of $12.3 million on $65 million in revenue in its most recent quarterly filings last month.
Jushi also plans to open its first marijuana store in New Jersey late this year or early in 2026, the company announced.
Like other big MSOs, Jushi is under pressure from creditors to repay significant debt.
Jushi’s debt, subject to scheduled repayments, totals $192 million, according to filings.
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