Supreme Court Weighs CBD Mislabeling Case: Implications for RICO

The U.S. Supreme Court reviewed a case involving Douglas Horn, a truck driver fired after using a mislabeled CBD product. Originally dismissed, his lawsuit under the RICO Act was revived by an appeals court. The case questions if job loss can be considered a business injury under RICO.

The U.S. Supreme Court faced a pivotal case on Tuesday, scrutinizing the repercussions of CBD mislabeling. Douglas Horn, a New York truck driver, lost his job after a drug test detected THC from a CBD tincture. He argues it was falsely marketed, leading him to file a lawsuit.

The suit, filed under the Racketeer Influenced and Corrupt Organizations (RICO) Act, accuses Medical Marijuana Inc of contributing to his dismissal through misleading product claims. Horn's legal action, initially blocked, saw a revival by the 2nd U.S. Circuit Court of Appeals, spotlighting employment loss as a potential business injury.

The highest court appears divided. While some justices are sympathetic to Horn's plight, others, like Justice Brett Kavanaugh, caution against broadening RICO's scope to include personal injury cases. The court's decision, expected by June, could significantly impact interpretations of RICO's civil provisions.

(With inputs from agencies.)