TobaccoReporter logo

Tag: Cresco Labs

  • Cresco Says Can’t Have Class-Action if No One Was Harmed

    Cresco Says Can’t Have Class-Action if No One Was Harmed

    Cresco Labs submitted a new filing last week, urging an Illinois federal court to dismiss a proposed consumer class action alleging the company mislabeled certain cannabis vape oils to circumvent state THC potency limits. In its latest filing, the company argued that the lawsuit suffers from “fundamental flaws,” emphasizing that no consumer has claimed to have been harmed by purchasing the products at issue.

    The suit alleges Cresco improperly classified some cannabis oils as concentrates rather than cannabis-infused products, a distinction that carries different THC caps and labeling requirements under Illinois law. Cresco disputes this characterization, saying its products complied with state regulations and that disputes over classification and labeling fall under the authority of regulators, not private plaintiffs.

  • Cresco Labs Moves to Dismiss Labeling Class Action

    Cresco Labs Moves to Dismiss Labeling Class Action

    Cresco Labs, the Chicago-based cannabis company, asked a federal judge in Illinois to dismiss a proposed class-action lawsuit accusing the company and its subsidiaries of mislabeling cannabis products. The lawsuit alleges that Cresco’s products were inaccurately labeled, potentially misleading consumers about potency and content.

    In its motion, Cresco contends that the claims lack sufficient legal basis and argues that the company has complied with applicable state and federal regulations. The company is seeking to have the case dismissed before it proceeds to discovery or trial.

    No court date has been set yet for a ruling on the motion, and the case remains under review. The outcome could have broader implications for labeling standards and consumer protection in the rapidly growing cannabis industry.

  • Cresco Labs to Exit California Cannabis Market

    Cresco Labs to Exit California Cannabis Market

    Cresco Labs Inc. announced plans to sell its California operations as part of a strategic restructuring aimed at boosting cash flow and focusing on higher-margin markets. The multistate cannabis operator is in talks with buyers for its cultivation, manufacturing, and select distribution assets in California, with a deal expected in the coming quarters. Cresco will retain its premium FloraCal brand, continuing its presence in key U.S. markets.

    CEO Charlie Bachtell cited California’s “structural challenges” and the lack of a scaled footprint as reasons for the exit, saying the move will allow Cresco to reallocate capital to core and emerging markets with clearer growth potential.

  • Cresco Labs Shows Record Cash Flow in FY24

    Cresco Labs Shows Record Cash Flow in FY24

    Cresco Labs Inc. today (March 13) released its financial and operating results for the fourth quarter and FY24. For the year, Cresco Labs reported:

    • Revenue of $724 million, record operating cash flow of $132 million, and free cash flowof $114 million.
    • Gross profit of $364 million. Adjusted gross profit of $374 million; and an adjusted gross margin of 52% of revenue, a 270 bps improvement year-over-year.
    • SG&A of $221 million. Reduced Adjusted SG&A by 12% year-over-year to $212 million, or 29% of revenue.
    • Net loss of $60 million which includes one-time, non-cash charges of $66 million, related to the company’s expected benefits from its updated 280E position, as initially described in the second quarter of 2024.
    • Adjusted EBITDA1 of $200 million, up 15% year-over-year; and Adjusted EBITDA margin1 of 28%, a nearly 510 bps improvement year-over-year.

    “In 2024, the team executed with discipline—streamlining operations, prioritizing profitability, and generating record free cash flow,” said Charlie Bachtell, Cresco Labs CEO and co-founder. “With $132 million in operating cash flow, a leading brand position in our core markets, and retail productivity that outperforms the industry, our foundation is stronger than ever. In 2025, we’re extending our focus to strategically deploy capital to create growth and maximize returns for the years ahead. It’s a straightforward approach: execute at the highest level, generate cash, reinvest in high-ROI opportunities, and repeat.

    “Kentucky is our first of these new market expansions—a strategic addition backed by clear regulations. As one of only two Tier 3 cultivators, we have up to 25,000 square feet of canopy, representing more than 20% of the state’s total allocation. This allows us to scale efficiently, serve patients quickly, and reinvest in our operations—just as we have in Illinois, Pennsylvania, and Ohio. Congratulations to the Cresco team on a phenomenal 2024 and Let’s Go in 2025!”