Jushi's Legal Win Signals Escalating War on Unregulated THC Market

BOCA RATON, FL – March 25, 2026 – Jushi Holdings Inc., a prominent multi-state cannabis operator, has secured the first settlement in its ongoing legal battle against the sale of unregulated, intoxicating hemp-derived THC products. The agreement with Revelry Supply, Inc. marks a significant milestone in a broader conflict that pits the state-licensed cannabis industry against a burgeoning and controversial gray market.

This development, announced today, resolves claims against Revelry as part of a larger lawsuit filed in Pennsylvania. The litigation targets what Jushi describes as unfair and illegal competition from businesses selling intoxicating products, such as Delta-8 and hemp-derived Delta-9 THC, outside the state’s regulated medical marijuana framework. This initial victory could embolden other licensed operators who feel economically threatened by the proliferation of these products.

A Precedent-Setting Settlement

The settlement stems from a lawsuit filed by Jushi subsidiaries Agape Total Health Care Inc. and Franklin Bioscience in the Court of Common Pleas of Philadelphia County. The broader action, styled Agape Total Health Care Inc., et al. v. Golden Hour, LLC, et al., names multiple entities Jushi alleges are destabilizing the regulated market and endangering public health.

In the company's official announcement, Jushi's Chief Strategy Director, Trent Woloveck, framed the litigation as a necessary step to protect consumers and the integrity of the state-regulated system.

“We initiated this litigation to help protect the integrity of state regulated cannabis markets and, most importantly, to support public health and safety by addressing the proliferation of under-regulated intoxicating products being sold across the US,” Woloveck stated. “We believe consumers deserve transparency, product testing, and regulatory accountability. We will continue to shine the light on the bad actors in ‘hemp’. This first settlement marks an important step in that effort.”

While the specific terms of the agreement with Revelry remain confidential, Jushi has affirmed its commitment to pursuing claims against the remaining defendants in Pennsylvania and potentially other states. The move signals a more aggressive, proactive strategy from a major player in the regulated space, shifting from lobbying efforts to direct legal challenges.

The Gray Market Battleground

The conflict is rooted in the legal ambiguity created by the 2018 Farm Bill. The federal legislation legalized hemp by defining it as a cannabis plant containing less than 0.3% Delta-9 THC by dry weight. This inadvertently opened a loophole for the production of other intoxicating cannabinoids, like Delta-8 THC, which can be chemically synthesized from legal hemp-derived CBD. The result is a flood of psychoactive products sold online and in unlicensed outlets like gas stations and smoke shops, often with no age verification or quality control.

This has created a fractured regulatory landscape. While some states with mature cannabis markets have moved to ban or regulate these intoxicating hemp derivatives, many others have not, creating a patchwork of inconsistent laws. Producers in this gray market operate without the significant financial and regulatory burdens faced by state-licensed cannabis companies. These burdens include steep licensing fees, high taxes, and mandatory adherence to “seed-to-sale” tracking systems that monitor products from cultivation to final sale.

Public Health on the Line

Beyond the economic friction, Jushi’s lawsuit brings critical public health and safety concerns to the forefront. State-regulated cannabis products must undergo rigorous third-party testing for potency and purity, ensuring they are free from harmful contaminants like pesticides, heavy metals, and residual solvents. Unregulated hemp-derived products are subject to no such requirements.

Public health agencies have repeatedly sounded the alarm. The U.S. Food and Drug Administration (FDA) has issued warnings about Delta-8 THC, citing a rise in adverse event reports and concerns over potentially unsafe manufacturing processes. The Centers for Disease Control and Prevention (CDC) has also noted a surge in calls to poison control centers related to accidental exposure, particularly among children who may mistake the brightly packaged edibles for regular candy.

Independent lab tests have frequently shown that these unregulated products are mislabeled, containing significantly more or less THC than advertised. Some have been found to contain illegal levels of Delta-9 THC or even undisclosed synthetic cannabinoids, posing a serious risk to unsuspecting consumers who believe they are purchasing a legal and safe product.

The Economic Squeeze on Regulated Cannabis

For licensed operators like Jushi, the unregulated market represents a direct and substantial economic threat. Having invested hundreds of millions of dollars to build compliant cultivation, manufacturing, and retail operations, these companies find themselves undercut by competitors who bypass the entire regulatory structure. The price disparity is stark; without the overhead of taxes and compliance, gray market products can be sold for a fraction of the cost of their regulated counterparts.

This dynamic erodes the market share of legal businesses and deprives states of significant tax revenue intended for public services. The situation creates a destabilizing force for investors, who see the value of their holdings in the legal market threatened by an unchecked competitor. Jushi’s legal offensive can be seen as a defensive maneuver to protect its investments and compel regulators to address the competitive imbalance. This lawsuit and its first settlement may serve as a blueprint for other multi-state operators facing similar pressures, potentially triggering a wave of litigation aimed at leveling the economic playing field and forcing legislative clarification on a national scale.