Two men are hoping for a larger class action lawsuit against Illinois-based hemp vape maker Lifted Liquids (OTC: LFTD) for making products that exceed the legal amount of delta-9 tetrahydrocannabinol (THC).
Law360 reported that Josue and Sergio Hernandez filed the proposed class action lawsuit in an Illinois federal court on Nov. 19. In it, they said they purchased the Urb products from Lifted Liquids because they wanted stress relief but didn’t want to use stronger delta-9 cannabis. Delta-9 cannabis is typically associated with regulated cannabis, and hemp producers usually sell products with delta-8 and delta-10 that contain less than 0.3% delta-9 THC.
The Hernandezes also stated in the complaint that cannabis products with higher THC levels are illegal in their home states of Texas and Florida. Both states do have medical marijuana programs; Texas has an extremely restrictive program, while Florida’s program is lenient and has become a multimillion market. However, adult-use products remain illegal.
The complaint argues that Lifted Liquids stated in its labeling and advertising that its products were below the 0.3% threshold, but an independent lab that they hired reported that the products contained between 1.35% and 3.99% delta-9 THC, or between four and 13 times more than federal law permits.
The Hernandezes claim they got higher than they thought they would due to the higher THC levels and that they were misled by the labels. The complaint also claims they were injured and harmed.
They also said that owning illegal products could have gotten them in legal trouble since they are technically Schedule I drugs. The complaint alleges that Lifted Liquids knew the products had too much THC and deliberately misled its consumers, reaping the benefits of the legal hemp trade, while their consumers unknowingly are buying illegal products.
The lawsuit claims that consumers of the products have suffered injuries and lost money. They want restitution related to the profits the company has made selling the products.
In 2018, the company received a warning letter from the FDA saying its Vape Heads Sour Smurf Sauce e-liquid was misleading under section 903(a)(1) and/or 903(a)(7)(A) of the FD&C Act because it caused the product to imitate food products, particularly ones that are marketed toward, and/or appealing to, children.
In 2019, Lifted Liquids went public through a merger with CBD Lion. LFTD stock lately sold at $0.60 a share. The company reported it had $28 million in sales for the nine months ending in September. Lifted also reported that it is facing two other similar lawsuits regarding its hemp THC levels.
2263000-2263369-https-ecf-ilnd-uscourts-gov-doc1-067131481657 Lifted Liquids is being sued for similar complaints in two other lawsuits. Read More
