Virginia Medical Cannabis Company Sues DoorDash for Delivering Illegal Intoxicating Hemp Products 

A Virginia-based medical cannabis company has filed a lawsuit against
DoorDash, Total Wine & More, and other associated distributors, alleging
the companies conspired to sell “intoxicating cannabinoid products” under
the auspices of the products being legal hemp.

The lawsuit from Dalitso LLC – which is owned by Jushi Holdings Inc. and
does business as Hello Cannabis Dispensary – contends that Total Wine’s
Arlington store sold a four-pack of “Coastalo THC Red Cream Soda” with a
combined 5.65 milligrams of total THC. That THC concentration exceeds
Virginia’s 2-milligram limit for products defined as hemp, and the lawsuit
alleges that DoorDash delivered these drinks to consumers in Arlington and
across Virginia, which allowed unlicensed cannabis sales, and gave the
defendants an “unlawful economic advantage” over licensed dispensaries that
follow strict rules.

In addition to Total Wine and DoorDash, the lawsuit names DT Virginia Fine
Wines LLC; Grayscale Brewing (DBA Urban Artifact Brewing); Coastalo,
LLC; and Specialty Beverage, LLC.

The lawsuit argues that, while disguised as lawful hemp, the “products are,
in reality, potent and dangerous forms of marijuana, offered without the
mandatory safeguards, testing, or oversight that the Commonwealth imposes
on licensed cannabis operators.” Further, the lawsuit contends that “the
existence of a fully regulated medical cannabis framework in Virginia
demonstrates that Defendants’ products are not operating in a legal void.”

“Rather, Defendants have chosen to bypass this framework entirely,” the
lawsuit states, “competing directly with licensed operators while
evading the laws designed to protect consumers and maintain the integrity
of the cannabis market.”

Dalitso is seeking $20 million in damages, triple damages under Virginia’s
business-conspiracy statute, and court orders to end unlicensed cannabis
deliveries near its dispensaries.