New Jersey-based Specialty Oil Services, Inc., is suing Stessa Thompson, Crownland Investments, Ag Marvels, Renegade Nation, Inc., and Todd W. Smith, aka Charlie Renegade, for delivering poor-quality hemp worth far less than the company paid.
Specialty Oil is a licensed hemp producer and extractor that purchases hemp biomass and uses it to extract CBD oil and other products that it sells to customers. In early 2024, Specialty Oil claims it had discussions with Thompson about purchasing high-quality CBD-rich hemp biomass. In February 2024, Specialty Oil and Stessa worked out an agreed price of $3.25 per pound of hemp biomass that Stessa represented would be 9-11% CBD. Specialty Oil says it paid her $156,992.50 for 46,148 pounds of conforming hemp, which included $4,600 for shipping.
Instead, Specialty Oil claims it received two truckloads of low-quality, low-CBD hemp that tested far below the promised range. They say they took photos of the product and told Thompson of the problem, but because they had customer orders to fill they used the product they claimed was inferior. Due to the poor quality, Specialty Oil said that they used 42,923 pounds of hemp for extraction, which yielded 3,211 pounds of winterized crude (7.5% per weight). They said if the quality were better it would’ve been 15% per weight. According to the complaint, Thompson and Crownland acknowledged the problem and promised to make up the shortfall.
Once again, needing to fulfill orders, Specialty Oil ordered an additional 38,000 lbs. of premium hemp, which was supposed to have 9-11% CBD. The company paid $126,100, including $2,600 for shipping. However, when the shipment arrived, the company rejected the truckload due to visibly poor-quality hemp and unusable biomass.
They allege in the complaint that the truck was originally loaded with the correct hemp, but that Smith ordered the truck to be loaded with the poor quality hemp instead. Thompson and Smith allegedly agreed to rectify the situation, to make up for Specialty’s losses. Instead, more sub-par and unusable hemp was delivered.
Based on the quality of the hemp received and its CBD potency, which was measured and recorded, the hemp provided by Defendants was worth only $.35 per pound not the $3.25 per pound paid by Specialty Oil.
Specialty Oil claims its damages totaled $227,372.50, not counting incidental and consequential losses. The company also claims it lost customers, profits, and its reputation. Specialty Oil paid $283,092.50 for 93,038 pounds of 9-11% CBD hemp.
Specialty Oil claims that Thompson received a commission for the sales when she never delivered the goods she promised. The company wants to be compensated for its losses.
2284000-2284495-119122107177 The company said the low quality product cost them over $200,000. Read More
