The suits just keep coming. FDA sent a Warning Letter to Koi CBD earlier this month (along with 14 other companies) because of its marketing practices of products containing CBD. In response, plaintiffs in California filed suit in federal court, alleging that they would not have purchased the products, or would have paid less for the products, had they known that the products were illegal. The plaintiffs seek to represent a nationwide class and are seeking at least $5 million in damages. This class action suit joins several other unfair competition and false advertising lawsuits filed last week in California over CBD products.
We believe that this is just the tip of the iceberg when it comes to both FDA enforcement and class action litigation. Follow our tips for risk mitigation here: https://www.reedsmith.com/en/perspectives/2019/11/as-consumer-litigation-mounts
Just days after Koi CBD received a U.S. Food and Drug Administration warning over the marketing of its CBD products, a proposed class of consumers filed a California federal suit against the company claiming it knowingly sold illegal merchandise.