Business
Marijuana Company Sues DoorDash, Total Wine Over Alleged Illegal Hemp THC Sales
Published
on January 22, 2026
Jushi Subsidiary Sues DoorDash, Total Wine Over Alleged Violations of Virginia Hemp Law
A subsidiary of multi-state cannabis company Jushi Holdings Inc. is suing DoorDash, Total Wine, and several other businesses for allegedly violating Virginia hemp laws by marketing cannabis products that exceed the state’s legal THC limits.
The lawsuit, filed Wednesday in the Virginia Circuit Court of Arlington County, was brought by Dalitso LLC, a Jushi subsidiary. The complaint alleges that the defendants have engaged in a “deliberate and coordinated scheme to erode Virginia’s heavily regulated medical cannabis market” by selling unregulated intoxicating cannabinoid products.
“Disguised as lawful ‘hemp,’ these products are, in reality, potent and dangerous forms of marijuana, offered without the mandatory safeguards, testing, or oversight that the Commonwealth imposes on licensed cannabis operators such as Plaintiff,” the filing states. “Through this deception, Defendants have flooded Virginia’s marketplace with unregulated and illegal cannabis products, exploiting consumer confusion and gaining an unlawful competitive advantage.”
Background: Hemp vs. Regulated Cannabis
The lawsuit outlines the evolution of hemp laws, including the 2018 Farm Bill, which federally legalized hemp containing up to 0.3% delta-9 THC by dry weight. Virginia further tightened regulations in 2023, setting a 2-milligram THC per package limit for products sold outside licensed dispensaries.
Dalitso claims that defendants, including Grayscale Brewing, Specialty Beverage, and Coastalo, have sold hemp and industrial hemp extracts exceeding Virginia’s THC limits, undermining the state’s regulated medical cannabis system.
“Licensed dispensaries like Plaintiffs operate under stringent oversight, pay substantial licensing and operational fees, and comply with rigorous testing, packaging, and tracking requirements. Intoxicating hemp sellers bear none of these costs or obligations, yet compete for the same consumers by selling untested, unregulated, and unlawfully potent intoxicants,” the lawsuit reads.
Jushi is seeking a jury trial and more than $80 million in damages, citing economic losses from unfair competition.
Company Statement
Trent Woloveck, chief strategy officer at Jushi, told Marijuana Moment that the lawsuit is meant to ensure a level playing field.
“Our goal is not to remove products that are following the law. We should ensure that businesses participating in cannabis do so under the legal framework, so we can normalize the plant. But if businesses shortcut the process, we’re going to shine a light on them,” Woloveck said.
“These sellers are offering intoxicating THC products without the oversight, licensing, or tax burdens borne by licensed cannabis companies. Consumers have given us positive feedback in support of this effort to protect public health and safety.”
Regulatory and Political Context
While adult-use cannabis possession has been legal in Virginia since 2021, retail sales remain prohibited, fueling a multibillion-dollar illicit market. Governor Glenn Youngkin (R) has vetoed legalization proposals during each of the past two legislative sessions, though lawmakers are preparing to push for recreational cannabis sales in 2026. The election outcomes could influence the prospects of such reform.
On the federal level, Congress is also grappling with hemp regulations. A bipartisan coalition of 39 state and territory attorneys general recently urged Congress to clarify the federal definition of hemp and regulate intoxicating cannabinoid products.
Senator Rand Paul (R-KY) has proposed legislation—the Hemp Economic Mobilization Plan (HEMP) Act—to expand the allowable THC concentration in hemp while addressing other regulatory concerns, countering prior proposals that would have banned consumable hemp products containing any measurable THC.
Meanwhile, retail giant Target has begun a pilot program selling THC-infused beverages in select Minnesota stores, reflecting growing mainstream consumer demand for regulated cannabis products.
The Jushi lawsuit highlights the tension between unregulated hemp products and licensed cannabis operations, underscoring ongoing legal, regulatory, and competitive challenges in Virginia and across the U.S.
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