An Arkansas federal judge dismissed parts of a proposed class action alleging a retailer, vape manufacturer, and others conspired to sell vaping products containing THC above legal limits. While warranty claims and the Drug Dealer Liability Act counts were thrown out, the court allowed fraud, negligence, racketeering (RICO), and fraudulent transfer claims to move forward.
The case involves allegations that products labeled as under the 0.3% THC threshold actually exceeded that limit and that fraudulent lab certificates were used. Cigarette Store LLC, Savage Enterprises LLC, and ACS Laboratory LLC were among those named in Smith et al. v. Cigarette Store LLC et al.