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Supreme Court Upholds Civil RICO Lawsuit Against Medical Marijuana, Inc. On April 2, 2025, the U.S. Supreme Court issued a 5-4 ruling against Medical Marijuana, Inc. (MJNA.PK), the parent company of Kannaway, the first CBD company in Network Marketing. This ruling permits a civil lawsuit to proceed under the Racketeer Influenced and Corrupt Organizations Act (RICO). The case, titled Medical Marijuana, Inc. v. Horn, centers on Douglas Horn, a commercial truck driver terminated after he failed a drug test from using a CBD product, Dixie X. This product was marketed by the San Diego-based company as free of tetrahydrocannabinol (THC), the psychoactive substance found in marijuana. Justice Amy Coney Barrett, representing the majority opinion, upheld the Second Circuit's decision allowing Horn to move forward with his RICO claim. Established in 1970 to fight organized crime, RICO's civil provisions permit plaintiffs to pursue triple damages for harm to their “business or property” caused by the racketeering actions of a defendant. The central question was whether Horn's job loss qualified as a compensable business injury under RICO, even though it arose from a personal injury (THC ingestion). Barrett wrote, “Medical Marijuana cannot overcome the plain meaning of ‘injured’ as ‘harmed,’ offering no viable alternative interpretation.” The ruling rejected the company' s argument that RICO excludes economic losses tied to personal injuries, clarifying that such losses can qualify as injuries to “business or property.” Horn, who has suffered from chronic pain since a trucking accident in 2012, purchased Dixie X products, believing Medical Marijuana's claim that they were THC-free. However, a random drug test indicated the presence of THC, leading to his termination from a long-held position, even though he does not use marijuana. Subsequent independent lab tests confirmed that THC was indeed in the product. In 2015, Horn and his wife, Cindy, filed a federal lawsuit in New York, alleging that Medical Marijuana and its affiliates operated a “pattern of racketeering activity,” which comprised mail and wire fraud and violations of the Controlled Substances Act, causing Horn economic damages due to his job loss. A district court first dismissed Horn's RICO claim, but the Second Circuit reversed this decision, leading to Medical Marijuana's appeal. The Supreme Court's ruling now returns the case for further proceedings, with the majority emphasizing that Horn must demonstrate a direct connection between the company's misrepresentations and his termination. Conclusion The Supreme Court’s decision in Medical Marijuana, Inc. v. Horn marks a pivotal moment for civil RICO litigation, affirming that economic harms from personal injuries can qualify as injuries to “business or property.” While this ruling expands opportunities for plaintiffs, it also underscores the rigorous hurdles, particularly causation, that they must overcome. For MLM companies selling CDB-based products, the decision signals increased litigation risks, necessitating robust risk management strategies. As Horn’s case returns to the lower courts and new RICO claims emerge, the Direct selling legal community will closely watch how courts define “business,” “property,” and “direct causation” in this evolving landscape. Ultimately, the Horn ruling reinforces RICO’s broad remedial purpose while leaving critical questions for future resolution, ensuring that civil RICO remains a dynamic and contentious area of law. Sources: Medical Marijuana, Inc. v. Horn, 604 U.S. ___ (2025) Reuters, “US Supreme Court rejects medical marijuana firm’s bid to avoid racketeering suit” (Apr. 2, 2025) Dooly's online content, including articles, videos, and radio shows, are highly regarded and widely referenced. Dooly is an internationally recognized expert in communication, leadership, marketing, culture development, regulatory affairs within the gig economy, direct sales, small businesses, network marketing, MLM, and public companies. Dooly acknowledges that we are in a Post-Trust Era, where consumers value facts over spin when engaging with businesses and individuals. http://troydooly.com/disclosures/

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*LIVE* on Twitch - https://www.twitch.tv/gbln420 (MERCH LINKED BELOW) In todays video, I explain the loophole involving THCA and how it became legal. I am not an expert. I hope you enjoy! Check out my website at https://goblin420.com/ ! Join this channel to get access to perks: https://www.youtube.com/channel/UCyzGHKIJjYT-H0x_bzP52SQ/join DISCLAIMER: I am in no way confessing to the acts stated in this video. This video, along with all others found on my channel, has been uploaded purely for entertainment purposes and should not be taken seriously. Contact: ☆Twitter☆ https://twitter.com/TheGoblinnn ☆Snapchat☆ thegxblin ☆Business E-Mail☆ [email protected] ☆Instagram☆ https://www.instagram.com/thegbln/ I hope you enjoyed, subscribe if you did!

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Nearly half the U.S. population now have access to adult-use cannabis. Marijuana is a medicine, if it’s cultivated or extracted right, and millions of people find relief or pleasure from this fantastic plant. But as legalization accelerates, regulations have struggled to keep up. Most experts and maybe many consumers would agree that cannabis is not well regulated or could use some improvements. Meanwhile, new cannabinoids like delta-8-THC, THC-O and more are hitting the streets, licit and illicit. This is a rapidly changing environment, which is far beyond THC and CBD, the two most well-known drugs in marijuana. It leaves a lot of questions: Are these ‘new’ cannabinoids safe? What do they do in the body? What about vaping them? Narcotica co-host Troy Farah speaks with Jason Wilson of Medford Oregon, host of the Curious About Cannabis podcast, and author of the book of the same name, which can be found at CACpodcast.com. Jason is a biologist and science educator that has been studying the biochemistry of the cannabis plant and cannabis-derived products for nearly a decade. Jason has done work with groups like the International Institute for Cannabinoids (ICANNA) and serves as a member on the board of directors for the Oregon Cannabis Education and Resource Center. Follow Jason on Twitter @AboutCannabis If you liked this episode, here are others you might enjoy: Episode 53: A Life of Getting Lit with Tommy Chong Episode 49: Salvia: Psychedelic Oddity (Plus, Canada’s Emerging Psilocybin Scene) Episode 25: Banning Kratom Will Escalate the Opioid Overdose Crisis with Walter Prozialeck Follow Narcotica on Instagram, Facebook, Twitter, YouTube and support us on Patreon. Help keep this podcast ad-free! Your support is appreciated! We’re on Spotify, iTunes, Stitcher and more. Tell your friends about us! Rate us! And thanks for your support! Producers: Christopher Moraff, Troy Farah, Zachary Siegel Co-producer: Garrett Farah Music: Glass Boy / Done With Fish Intro voice: Jenny Schaye Image: Flickr — Willpower Studios // edit: Troy Farah

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