Supreme Court Considers RICO in CBD Case

The Supreme Court is deliberating whether Douglas Horn, a truck driver terminated after failing a drug test, can use the Racketeer Influenced and Corrupt Organizations Act (RICO) to sue the manufacturers of a CBD product falsely advertised to be THC-free. Horn argues that his firing constitutes a business injury, allowing him to claim damages under RICO, which could potentially include triple damages and attorney fees. While the 2nd U.S. Circuit Court of Appeals sided with Horn, showing support for his argument that being fired affects business or property, there is concern from conservative justices about broadening RICO's scope to cover such cases. The companies involved argue that Horn's issue is a personal injury, not a business harm, and thus should not be covered under RICO. The case, Medical Marijuana Inc. v. Horn, raises broader questions about the application of RICO beyond its traditional use against organized crime. A decision is expected next year, which could significantly impact the types of cases that qualify for RICO claims.