Justices to Review CBD Oil Makers’ Fight Against Consumer Suit

April 29, 2024, 1:34 PM UTC

The US Supreme Court agreed to hear an appeal from the manufacturers of a CBD hemp oil now facing triple damages in a lawsuit brought by a consumer who says the product caused him to fail a drug test and lose his job.

In an order Monday, the justices said they will consider if personal injuries count as “business or property” injuries required for lawsuits to be brought under the Racketeer Influenced and Corrupt Organizations (RICO) Act. The law allows injured parties to seek triple damages and attorneys fees.

The US Court of Appeals for the Second Circuit said Douglas Horn’s RICO claims against the makers of Dixie X could proceed because he suffered an economic injury when he lost his job,

Horn was fired from job as a truck driver after testing positive for THC in a routine drug test. He said he never would have used Dixie X to treat his chronic pain if its advertising had been truthful and said it contained even trace amounts of THC.

The case is Medical Marijuana, Inc. v. Horn, U.S., No. 23-365.


To contact the reporter on this story: Lydia Wheeler in Washington at lwheeler@bloomberglaw.com

To contact the editors responsible for this story: Seth Stern at sstern@bloomberglaw.com; John Crawley at jcrawley@bloomberglaw.com

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