Leafwell Inc. filed a federal lawsuit against fellow medical marijuana company My Florida Green, alleging its competitor used artificial intelligence to fabricate legal claims as part of an extortion scheme designed to damage Leafwell’s business. The suit was filed in the U.S. District Court for the Middle District of Florida last week.
According to the complaint, My Florida Green allegedly filed a factually and legally deficient lawsuit in September, accusing Leafwell of unlawful business practices, then used the litigation to pressure the company to settle the lawsuit, scare off business partners, and otherwise harm Leafwell’s operations. Leafwell claims the filings were AI-generated and lacked proper factual and legal grounding.
According to Justia Law, the court is scrutinizing the original filings, highlighting the growing business and legal risks tied to the misuse of AI in litigation and competitive disputes, particularly in highly regulated sectors like medical cannabis.