CBD Oil Cos. Must Face RICO Claims, Judge Rules

Law360 (April 18, 2019, 5:35 PM EDT) -- A trucker who was fired after he failed a drug test can pursue racketeering claims against companies who claimed a CBD oil he used didn't contain THC, a New York federal judge ruled Wednesday.

U.S. District Judge Frank P. Geraci said Douglas Horn provided sufficient evidence to show a pattern of racketeering activity on the part of Medical Marijuana Inc., Dixie Elixirs and Edibles and Red Dice Holdings LLC — specifically, his 2012 purchases of hemp-based oil Dixie X Dew Drops, a controlled substance under the Controlled Substances Act.

It can also be inferred the companies knew the identity of their...

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