Ohio AG sues Corporate Cannabis

Ohio Attorney General Dave Yost announced this past week that the state of Ohio will be suing 9 multi-state operations in the cannabis market. The state will be suing Ascend, AYR, The Cannabist Company, Cresco, Curaleaf, Green Thumb Industries, Jushi, Trulieve, and Verano, all of which are held liable and will be required to appear in court due to an antitrust lawsuit brought by AG Yost. The lawsuit stems from a tip that came into Yost's office in late 2024. This was almost a year following the passage of State Bill 56 in December of 2023, only a few months after the first recreational sale of cannabis in Ohio. The tip alleged that there was “shelf-space allotment” going on amongst multiple large, multi-state companies. This means that these companies were holding shelf space specifically for these other large companies to fill them with their product, whilst ignoring small competition. The goal of this practice is to eliminate small competition, keeping wholesale sales low and eventually killing a multitude of farms that lack the funding to set up their own storefronts. The tip also alleged, which a follow-up investigation also corroborated, that these companies entered into reciprocal agreements to push, buy, and prioritize each other's products. All the while, reducing or eliminating purchase orders from independent, smaller, lone state producers. These agreements are also alleged to be made on a national level, happening in every state where these producers are prevelant in. Lastly, included in the tip were the allegations that, in late 2022, many senior representatives from these multistate operators met with the understanding that they’d primarily purchase from each other and reduce purchases from small independent farms. This would reserve shelf space for each other during a time of increased product supply and declining prices. This meeting took place a year prior to the passage of Ohio’s SB 56; they knew legalization was on the horizon. Some of the companies are even alleged to have established internal quotas, having to meet a certain number of products to be purchased by each other, reserving a huge percentage of shelf space for each other. AG Yost’s lawsuit states that these companies violated Ohio’s Valentine Act by sharing competitively sensitive information, entering into reciprocal trade agreements with competitors, and engaging in discriminatory distribution practices that disadvantaged independent Ohio cannabis operators. AG Yost’s lawsuit also alleged that these practices stifled innovation, reduced product quality and choice, and allowed the defendants to maintain supra-competitive prices. AG Yost is looking for injunctive relief to halt the alleged misconduct. This could be a huge positive stride for the less competitive cannabis markets on the East Coast. Practices like these run rampant with these very same companies in a multitude of other limited cannabis markets, predominantly located on the East Coast of the US. Hopefully, AG Yost could start a trend among these states by calling out these practices and companies.

The positive aspect of this lawsuit could be seen for small producers not just in Ohio, but up and down the East Coast. These 9 producers are majorly prevalent in the Pennsylvania market, especially. Ohio’s neighboring state could see a major shift in cannabis powers as the year moves along. Producers such as Standard Farms, Calypso, Penn Health Group, Vytal Options, and Insa, whose focus has been on cultivation, extraction, and quality, could see a major year in 2026. Many of the companies listed in the Ohio lawsuit operate the same way in Pennsylvania. Not only does this pose a heightened risk for prosecution in Ohio’s neighboring state, but it leaves an expectation to fulfill orders and bring in more money to place more orders. With quality and consistency already being a concern for these producers, it’s hard to think that the 2026 calendar year will bring any improvements of note. With major out-of-state losses if this lawsuit from Ohio moves through, these companies will be pumping out product as quickly as possible. Consumers should rejoice at the news of this lawsuit, as it finally calls out a long-time not-so-secret industry secret. Holding major companies accountable and flooding the market with diversity and opportunity. This lawsuit could be the start of a national cannabis change as the East Coast catches up with the West in allowing small cannabis businesses to have a space in the industry.

Source: Yost Sues Multistate Cannabis Operators for Anti-Competitive Practices - Ohio Attorney General Dave Yost