Class-Action Lawsuit Claims Cannabis Companies Misled Customers with False Medical Benefits
A federal lawsuit was filed against three Chicago-based cannabis companies, alleging they made false claims about the medical benefits of their products and downplayed their potential dangers. The suit, filed on behalf of 42 customers in 12 states, claims the companies caused “tragedy and human misery” by misrepresenting the effects of their products.
The lawsuit names Cresco Labs Inc., Green Thumb Industries Inc., and Verano Holdings Corp. as defendants. The plaintiffs, represented by former McHenry County State’s Attorney Patrick Kenneally, claim the companies knew or should have known about the hazards of their products and lack of evidence for medical benefits. The suit seeks class certification for anyone who purchased cannabis products from the companies in recent years.
The lawsuit alleges that the companies made widespread fraudulent claims online and through salespeople, claiming their products could treat a range of ailments. However, a 2025 study published in the Journal of the American Medical Association found that there was insufficient evidence to support the use of cannabis for most medical indications.
The suit also claims that daily inhaled cannabis use is associated with an increased risk of coronary heart disease, heart attack, stroke, and cannabis-use disorder. Additionally, the American Psychiatric Association has stated that there is insufficient evidence that cannabis is effective for any psychiatric disorder.
The lawsuit accuses the companies of working together through trade groups to operate an illegal and fraudulent industry. It seeks disgorgement of “all monies wrongfully obtained” by the companies, restitution to their customers, and a prohibition on false medical claims. The suit also requires the companies to warn customers about the dangers of their products to mental and physical health.
In response, Verano issued a statement saying that the lawsuit is part of a broader litigation campaign against multi-state cannabis operators and that the company operates in compliance with applicable state laws and regulations. Cresco Labs declined to comment on the lawsuit.
The lawsuit comes as the federal government is considering rescheduling marijuana from Schedule I to Schedule III under the Controlled Substances Act, which would acknowledge its medical value and allow for more medical research. However, the industry remains in a potentially vulnerable legal position due to the continued illegality of cannabis under federal law.
