A Virginia-based medical cannabis company has filed a lawsuit against DoorDash, Total Wine & More, and other associated distributors, alleging the companies conspired to sell “intoxicating cannabinoid products” under the auspices of the products being legal hemp.
The lawsuit from Dalitso LLC – which is owned by Jushi Holdings Inc. and does business as Hello Cannabis Dispensary – contends that Total Wine’s Arlington store sold a four-pack of “Coastalo THC Red Cream Soda” with a combined 5.65 milligrams of total THC. That THC concentration exceeds Virginia’s 2-milligram limit for products defined as hemp, and the lawsuit alleges that DoorDash delivered these drinks to consumers in Arlington and across Virginia, which allowed unlicensed cannabis sales, and gave the defendants an “unlawful economic advantage” over licensed dispensaries that follow strict rules.
In addition to Total Wine and DoorDash, the lawsuit names DT Virginia Fine Wines LLC; Grayscale Brewing (DBA Urban Artifact Brewing); Coastalo, LLC; and Specialty Beverage, LLC.
The lawsuit argues that, while disguised as lawful hemp, the “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.” Further, the lawsuit contends that “the existence of a fully regulated medical cannabis framework in Virginia demonstrates that Defendants’ products are not operating in a legal void.”
“Rather, Defendants have chosen to bypass this framework entirely,” the lawsuit states, “competing directly
