A major cannabis company just fired a legal shot at popular delivery giant DoorDash and liquor chain Total Wine. They claim these businesses sell high-THC hemp drinks that break Virginia law and hurt licensed sellers. This bold move could shake up how people buy cannabis products in the state.
Dalitso LLC, part of Jushi Holdings, filed the suit on October 27 in Arlington County Circuit Court. The company runs Beyond Hello medical cannabis shops. It accuses DoorDash, Total Wine and More, Grayscale Brewing, Specialty Beverage, and Coastalo of a scheme to sell intoxicating hemp products. These sales allegedly create an unfair edge over regulated cannabis sellers who follow strict rules.
The complaint points to a specific product: Coastalo THC Red Cream Soda sold at Total Wine in Arlington. Tests showed it had 5.65 milligrams of total THC in a four-pack. Virginia law caps hemp products at 2 milligrams per package. Dalitso says this makes the drink an illegal cannabis item sold without licenses or safety checks.
Jushi wants the court to stop these sales right away. It also seeks $20 million in damages, plus triple that amount under Virginia’s business conspiracy law. The total could top $80 million. This fight aims to protect patients who rely on safe, tested medical cannabis.
Hemp Products Spark Legal Battle
Hemp became legal under the 2018 federal Farm Bill if it has less than 0.3 percent delta-9 THC. But states like Virginia tightened rules in 2023. Now, hemp items outside dispensaries can have no more than 2 milligrams of total THC per package. Anything over that counts as marijuana, which needs a license to sell.
Dalitso argues the defendants ignore these limits. They market drinks and gummies as harmless hemp but pack them with enough THC to get users high. DoorDash started offering these in January, teaming up with stores like Total Wine to deliver them fast. This bypasses the heavy fees and tests that licensed shops must do.
One short paragraph here. The suit claims this flood of unregulated goods confuses buyers and undercuts fair play.
Experts note Virginia’s medical cannabis program is booming. Sales hit record highs this year, far above early guesses. Yet operators like Jushi face tough costs for compliance. Unchecked hemp sales steal market share without the same burdens.
Unfair Competition Hits Regulated Sellers Hard
Licensed cannabis firms spend big on safety. They test every batch, track sales, and verify buyer ages. Hemp sellers skip most of that. Dalitso says this lets defendants charge less and grab customers who want quick highs. The result? A lopsided market that harms companies like Beyond Hello and risks public health.
Consider the costs. A 2024 report from the Virginia Cannabis Control Authority shows licensed dispensaries pay millions in taxes and fees yearly. Hemp operations pay little to none. This gap lets them undercut prices by up to 30 percent on similar products.
Dalitso’s chief strategy officer, Trent Woloveck, made it clear. He said the goal is to enforce rules for everyone’s safety. Unregulated items often lack proper testing, leading to unknown risks for users.
To break it down, here is a simple comparison:
| Aspect | Regulated Cannabis | Unregulated Hemp Products |
|---|---|---|
| THC Limit | Varies by license | 2mg per package max |
| Testing Required | Full lab checks | None or minimal |
| Age Verification | Strict ID checks | Often none |
| Taxes and Fees | High state levies | Low or zero |
| Oversight | State regulators | Federal only |
This table shows why Dalitso feels cheated. Buyers might pick cheaper hemp without knowing the dangers.
Broader Push for Cannabis Reform in Virginia
Virginia legalized possession of small amounts of marijuana in 2021. But retail sales for adults are still off-limits. Medical shops like Beyond Hello serve patients only. This leaves a gray area where hemp products fill the gap, but often illegally.
The lawsuit taps into a national debate. Over 30 state attorneys general urged Congress this year to close the hemp loophole. They want clearer rules on intoxicating extracts. Jushi filed a similar suit in Pennsylvania in August, targeting online hemp sellers there.
One key fact stands out. A study by the Multistate Cannabis Association in early 2025 found unregulated hemp sales cost legal markets $1.5 billion nationwide last year. Virginia alone lost about $50 million in potential revenue.
Dalitso hopes this case sets a precedent. It could force platforms like DoorDash to vet products better. For consumers, it means safer choices and clearer labels on what they buy.
This battle shows the growing pains of cannabis laws. As more states eye full legalization, fights like this push for balance between access and safety.
In the end, this lawsuit spotlights a key tension in America’s cannabis world: how to let innovation thrive while keeping users safe and markets fair. Dalitso’s stand could lead to real change, protecting patients and boosting trust in the system. It reminds us that behind the business is a push for better health options for all.