A federal court in New York has dominated that a racketeering and fraud situation against a trio of related corporations can go forward centered on a truck driver’s statements after he failed a drug take a look at following employing one particular of the firms’ CBD products.

While the court docket threw out some statements, it stated the situation, submitted in 2015 by trucker Douglas Horn, can continue versus Clinical Cannabis, Inc., Dixie Holdings, LLC a/k/a Dixie Elixirs, and Red Dice Holdings.

Unsuccessful the test for THC

Horn statements in his lawsuit that the organizations marketed their products as THC-no cost. He was terminated by New York-centered Company Transportation Organization soon after screening good for THC he claims was in Dixie Elixir CBD.

The presence of THC in the merchandise was verified by two laboratories, in accordance to the match brought by Horn, who is determined in court docket paperwork as a former “professional over-the-highway hazmat professional truck driver.”

Horn claims in the accommodate that by “unequivocally and regularly representing on their web-sites, press releases and marketing media that their solutions contain no unlawful THC,” when they do in simple fact comprise THC, that the businesses are “misleading the community at large” pertaining to the marketing and advertising of their goods.

Horn promises the firms’ marketing is “unfair, unlawful, untrue, misleading and/or misleading,” under federal recommendations. People claims now shift ahead as do more statements beneath the federal Racketeer Influenced and Corrupt Businesses (RICO) Act — typically cited in link with organized crime prosecutions.

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