Lawsuit Accuses Cannabis MSOs of Making False Medical Claims

A class action lawsuit filed in federal court Monday claims three Chicago, Illinois-based multi-state cannabis operators have made false medical claims about their products, the Chicago Tribune reports. The lawsuit, filed on behalf of 42 customers in a dozen states, claims Cresco Labs, Inc., Green Thumb Industries, Inc., and Verano Holdings Corp. are causing “tragedy and human misery” by making unsubstantiated claims about the medical efficacy of their products. 

A similar lawsuit was also filed in Marion County, Illinois, and in Connecticut against Curaleaf Holdings, Inc. 

The lawsuit alleges that the companies knew, or should have known, about the hazards of their products and the lack of evidence for the medical benefits. 

In a statement, Verano called the lawsuit “part of a broader litigation campaign that plaintiffs’ counsel has brought against several multi-state cannabis operators, and mirrors claims that have been rejected by courts in similar legal actions against multi-state operators in the industry earlier this year.” 

“The medical use and benefits of cannabis have also long been recognized by the states themselves, as reflected in the comprehensive medical marijuana programs that state legislatures and regulators have established and overseen for years. More recently, the federal government – through both the President’s December 2025 Executive Order and the Department of Justice’s April 2026 rescheduling order – has likewise formally recognized the accepted medical use of cannabis. We strongly disagree with the allegations and intend to defend the matter vigorously.” — Verano in a statement to the Tribune 

Cresco did not comment on the lawsuit. 

The lawsuit also accuses the defendants of a “conspiracy” to operate an illegal and fraudulent industry.