The lawsuit stems from an October 2024 tip submitted to Yost’s office by an Ohio cannabis industry official alleging widespread “shelf sharing” by large vertically integrated cannabis companies operating in Ohio and across the country.

According to information later confirmed by the investigation, cannabis operators in various states entered into reciprocal purchasing agreements — coordinated at the national level — to favor each other’s products at Ohio dispensaries while reducing or eliminating purchases from Ohio’s independent growers and processors.

“Our investigation uncovered allegations of an industry-wide scheme designed to drive Ohio’s small businesses out of business,” Yost said. “Ohio’s antitrust laws protect competition and consumers, not backroom deals that rig the system for a select few.”

According to information, senior representatives of major operators operating in different states met in late 2022 and agreed to reduce purchases from independent companies to save shelf space for each other during a period of increased supply and lower prices. The tip also alleged that some companies have established apparent internal quotas, reserving a significant percentage of pharmacy shelves for products obtained through reciprocal agreements with other multi-state operators.

The defendants in the lawsuit are:

• Ascend Wellness
• Air health
• The Cannabist Company
• Cresco Laboratories
• Kuralist
• Green Thumb Industries
• Jushi
• Trulieve
• summer

The lawsuit alleges that each defendant violated Ohio’s Valentine Act:

• Conclusion of mutual trade agreements with competitors.
• Sharing competitive confidential information.
• Engaged in discriminatory distribution practices that disadvantaged independent cannabis operators in Ohio.

According to the complaint, these actions reduced product choice and quality for Ohio consumers, stifled innovation and allowed the defendants to maintain or increase hypercompetitive prices in the state’s cannabis market.

Attorney General Jost is seeking an injunction to stop the alleged wrongful conduct.

Source: Ohio Attorney General’s Office

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Ascend Wellness, Air health, Cresco Laboratories, Kuralist, Green Thumb Industries, Jushi, Lawsuit, Ohio, The Cannabist Company, Trulieve, summer