- Ohio sued nine major cannabis companies for antitrust violations in February.
- Missouri cultivators filed a class action this week against one company accused of controlling far more of the market than state law allows.
- Both complaints use the word ‘cartel’.
Two states, two lawsuits, one argument: “the legal cannabis market has been rigged”.
Ohio’s attorney general sued nine of the largest multistate operators for colluding to fix prices and lock independent businesses off retail shelves. Missouri cannabis cultivators filed a class action this week accusing one Arkansas-based company of secretly controlling more than a quarter of the state’s licensed dispensaries through a shell company structure.
Ohio: Nine Companies, One Secret Meeting, and a $700 Million Market
Case: State of Ohio v. Ascend Wellness Holdings et al. · Filed: February 5, 2026 · Court: Franklin County Court of Common Pleas · Filed by: Ohio AG Dave Yost
In October 2024, an Ohio cannabis industry employee (and whistleblower) tipped off the AG’s office that large multistate operators were collaborating through shelf-space allocations. Attorney General Yost investigated, and the result was a 51-page antitrust complaint.
The nine named defendants are all headquartered outside of Ohio:
- Ascend Wellness
- Ayr Wellness
- The Cannabist Co.
- Cresco Labs
- Curaleaf (read more about Curleaf here.)
- Green Thumb Industries
- Jushi
- Trulieve
- Verano
The alleged scheme traces back to a meeting in late 2022, where company representatives allegedly agreed to reduce purchases from independent businesses to preserve shelf space for one another. Some companies then established internal quotas reserving a set percentage of shelf space for products from the other MSOs in the group. The complaint documents three practices alleged to violate Ohio’s Valentine Act: reciprocal supply agreements, exchanging non-public pricing information, and discriminatory distribution practices, which gave exclusive financial perks to cartel members, and denied them to everyone else.
The reach extends beyond Ohio. The suit claims the same conduct is occurring in 12 other states including New Jersey, Michigan, Illinois, and Massachusetts. According to the complaint, 13 of Ohio’s 60 counties with cannabis retailers have only MSO-owned stores, leaving independent operators no path to shelf space at all.
Ohio is seeking a permanent injunction and fines of at least $500 per day the illegal conduct occurred. All nine defendants deny the allegations.
One defendant stands out. Trulieve is named here as a cartel defendant while also being the company whose CEO was in the Oval Office when Trump signed the cannabis rescheduling executive order, whose company donated $750,000 to Trump’s inaugural committee, and whose Holyoke, Massachusetts facility is where 27-year-old Lorna McMurrey died in 2022 from inhaling cannabis dust. Trulieve is not a fringe player. It is one of the most politically connected cannabis companies in the country.
Missouri: One Company, 61 Dispensaries, and a Constitution It Allegedly Ignored
Case: CPC of Missouri-Smithville LLC and GF Saint Mary LLC v. Good Day Farm · Filed: April 28, 2026 · Court: Circuit Court of Jackson County · Type: Class action on behalf of independent wholesalers
The Missouri case targets one company that allegedly built a shadow empire using LLC structures to control far more of the market than state law allows. Good Day Farm is an Arkansas-based vertically integrated cannabis company. The complaint alleges the “GDF Cartel” controls an illegally high share of Missouri’s $1.52 billion cannabis market.
The problem here is specific, and it has to do with the states constitution. Missouri bars any entity under ‘substantially common control’ from holding more than 10% of the state’s dispensary licenses. With 224 dispensaries licensed statewide, that cap is 22. The complaint alleges GDF controls at least 61 dispensaries under five brand names, nearly triple what the constitution allows. Those dispensaries account for more than 40% of wholesale cannabis purchased in the state.
GDF allegedly got around the cap by arranging for third parties to invest in LLCs that then acquired additional facilities, all of which were controlled by GDF behind different brand names. The scheme is alleged to have depressed wholesale prices for independent operators by more than 20%.
The most damaging evidence comes from GDF’s own investor presentation. The complaint quotes the document stating the company’s strategy is to “leverage the Cartel’s retail commerce to extract gross margin” from third-party vendors. Good Day Farm used the word cartel to describe its own operation in a document it handed to investors. The same documents acknowledge the legal risk, warning that no assurances could be made that state regulators would not take issue with how many dispensaries GDF controlled.
The Bigger Picture
When large operators collude to depress wholesale prices, and block independent businesses from retail access, the financial pressure lands on the cultivators getting paid less, the processors watching their margins shrink, and the workers loosing their jobs. Ohio’s adult-use market hit $700 million in its first year (2024). Missouri’s is $1.52 billion for 2025. Both states voted for legalization with the expectation it would create economic opportunity. What these lawsuits allege is that the largest operators moved immediately to prevent exactly that.
This kind of market fixing is something that has been talked about amongst the industry for sometime. Folks knew it was happening, but the companies doing it have deeper pockets, and stronger connections, to the people that could stop them. So it is refreshing to see two states take action in what was *supposed* to be a fair market. Knowing who is involved in the Ohio lawsuit, there better be some watchdogs keeping close eye, because bribery and collusion are things that exist….just sayin’.
The Ohio case also connects to something CWR has tracked since launch. Nine of the most politically connected cannabis companies in the country, with some of the most lobbying power and access to federal policymakers, are now named in a state antitrust case. One of them had its CEO in the room when the federal rescheduling order was signed.
CWR will continue to follow these cases, check back for updates.
Sources: Cannabis Business Times · MedicateOhio · WKYC · MJBizDaily · Heady NJ · PRNewswire · KCTV5 · FOX 4 KC
