A Missouri marijuana company embroiled in controversy after it was forced to recall more than 60,000 products last year is now facing an $18 million lawsuit over unpaid invoices.
According to the Missouri Independent, cannabis manufacturer Delta Extraction was forced to make the recall last year after it was revealed the company had allegedly been mixing unregulated hemp-based THC oil into its cannabis oil without informing consumers. The state revoked the company’s manufacturing license following the revelation.
Now Delta Extraction is facing a lawsuit from SND Equipment Leasing, the company that was contracted to create the questionable material, for its production and for the loss of equipment during state raids.
According to SND, it was contracted to do a job, and it delivered. The company says it was Delta Extraction’s responsibility to make sure the work was within compliance with state regulations.
The company is asking for more than $13 million to cover product production and an additional $5 million in loss of revenue, because the state confiscated its extraction equipment for five months.
California Targets Illicit Bud
California authorities say they seized thousands of pounds of illicit cannabis while raiding illegal pot operations.
In a recent news release from California Gov. Gavin Newsom, state law enforcement conducted investigations looking for illicit cannabis grows located near state parks and found three grow sites at Saddleback Butte State Park and two sites at Colonel Allensworth State Park. According to authorities, officers found and destroyed a combined 5,256 illegal pot plants, weighing 13,377 pounds. Officers found 14 guns at the sites, including two assault weapons and three illegal ghost guns (untraceable weapons that are privately manufactured).
Gov. Newsom said the use of illegal pesticides can damage the ecosystems of state parks, which are valued natural and cultural resources and that he has directed his Unified Cannabis Enforcement Taskforce (UCETF) to target criminal cannabis enterprises. Newsom also said illegal marijuana grows exploit vulnerable workers.
The UCETF has reportedly seized over $120 million in illegal cannabis products, including nearly 73,300 pounds of unlicensed cannabis.
Pennsylvania Lawmakers Flub Bill, Kill Tax Relief
While drafting its budget bill, Pennsylvania lawmakers forgot to include medical cannabis dispensaries in a section that grants tax relief for the marijuana industry. Now that the bill has been signed into law, those companies will not be able to take state tax deductions.
The cannabis section of the bill allows marijuana producers and manufacturers to take state deductions equal to the amount that the federal government would allow if not for an Internal Revenue Service (IRS) code that prohibits anyone from taking tax deductions for a business that traffics controlled substances.According to Marijuana Moment, lawmakers forgot to include dispensaries in the bill, and now it’s uncertain if they will be able to fix the oversight without legislative action. Lawmakers are currently in talks with the state’s Legislative Reference Bureau to see what can be done.