Cake Brands Targeted in Hemp Class Action Lawsuit
Legal battles in the hemp industry are heating up, with California-based Cake Brands now in the spotlight. Lawyers are filing cases against hemp product manufacturers every week, alleging that THC levels are higher than advertised. The latest case involves Cake Brands, which is facing a class action lawsuit filed by the legal firm Smith Krivoshey. This same firm is also representing a similar case against Lifted Liquids, which reported $28 million in sales of these products over the last nine months.
Cake Brands, on the other hand, reported generating more than $1 million a week in sales in 2021. With such robust sales, annualized estimates put Cake’s revenue at around $36 million for that nine-month period in 2021. This case is targeting WM Wholesale LLC, the maker of various delta-8 vape pens and cartridges sold under the Cake brand. Lawsuits argue that these products, such as Cake Brand delta-8 devices and cartridges, contain more THC than their labels claim.
The plaintiff in this case, Josue Hernandez, based in Florida, bought these products expecting a mild effect due to the low advertised THC content. Surprisingly, the products allegedly contained more THC than suggested, leading to a stronger high than anticipated. Since possession of cannabis products with over 0.3% THC is illegal in Florida, this case raises concerns about false advertising and mislabeling.
Delta-8, a compound often derived from hemp, is legally sold in many states as long as it contains less than 0.3% delta-9 THC. However, the lawsuit claims that Cake knowingly marketed products with higher THC content, violating federal regulations. The goal of this legal action is not only reimbursement for affected consumers but also restitution for the revenues generated by the sale of these products.
Considering that Lifted Liquids, another targeted brand, reported $48 million in sales in 2023, the potential financial implications for Cake Brands could be substantial. It’s no surprise that the hemp industry is facing scrutiny over product quality and compliance with regulations. As the legal battle unfolds, it raises questions about transparency and accuracy in the marketing of hemp-derived products.
