$20 Million Lawsuit Against Delta Extraction Over Missouri Cannabis Recall

Delta Extraction, based in Robertsville, Missouri, faced a significant product recall last year, prompting regulatory actions and legal disputes.

Details of the Lawsuit

SND Equipment Leasing, the contractor responsible for creating THC concentrate oil for Delta Extraction, has filed a lawsuit claiming unpaid invoices totaling over $13 million. The lawsuit, filed in Franklin County, also seeks $5 million for loss of revenue due to equipment confiscation.

Contractual Dispute

SND argues that Delta Extraction contracted them to produce THC concentrate oil and other products, which were later subject to a statewide recall by regulators. The lawsuit contends that SND fulfilled its contractual obligations, regardless of regulatory compliance issues.

Legal Arguments

SND’s attorney, Joy Primoli, likened the situation to a contractor fulfilling a homeowner’s request, despite subsequent regulatory objections. She emphasized SND’s adherence to testing and safety protocols mandated by Missouri law.

Ongoing Legal Proceedings

Delta Extraction has appealed the license revocation and product recall decisions, with the Administrative Hearing Commission yet to issue a final ruling.

Industry Impact

The lawsuit sheds light on the complexities of regulatory compliance in the cannabis industry, particularly regarding THC product manufacturing and state oversight.

The outcome of this legal battle will likely influence future regulatory practices and contractual obligations within Missouri’s cannabis sector, underscoring the challenges faced by businesses operating in highly regulated environments.