Ohio Attorney General Dave Yost has filed an antitrust lawsuit against nine major cannabis companies, alleging anti-competitive practices designed to inflate prices for consumers and disadvantage smaller, Ohio-based businesses.
Allegations of Anti-Competitive Conduct
The legal action, announced Tuesday, stems from an investigation into claims that the companies prioritized each other’s products on dispensary shelves while minimizing purchases from independent Ohio growers. According to a release from Yost’s office, the companies allegedly engaged in a coordinated effort to keep prices artificially high.
The lawsuit specifically names Ascend Wellness, Ayr Wellness, The Cannabist Company, Cresco Labs, Curaleaf, Green Thumb Industries, Jushi, Trulieve, and Verano as defendants. Yost alleges these companies established internal quotas and reciprocal trade agreements that artificially maintained high prices.
Potential Consequences
The Attorney General is seeking a court order to halt these practices. If successful, this could lead to changes in how cannabis products are distributed and priced in Ohio. It is too possible the companies could face financial penalties. Yet, the outcome of the lawsuit remains uncertain.
Frequently Asked Questions
What is the basis of the lawsuit?
The lawsuit alleges that the nine cannabis companies engaged in anti-competitive conduct, including establishing internal quotas and reciprocal trade agreements, to artificially inflate prices and limit options for Ohio consumers.
Who is involved in the lawsuit?
The lawsuit was filed by Ohio Attorney General Dave Yost against Ascend Wellness, Ayr Wellness, The Cannabist Company, Cresco Labs, Curaleaf, Green Thumb Industries, Jushi, Trulieve, and Verano.
What is the Attorney General seeking?
The Attorney General is seeking a court order to halt the alleged anti-competitive practices.
As this legal battle unfolds, will Ohio’s cannabis market see a shift in dynamics between large operators and local growers?
