Civil Lawsuit Alleges Kushy Punch Distributed $64M of Unregulated Products

A civil lawsuit in California alleges that cannabis company Kushy Punch was responsible for about $64 million worth of illegally produced cannabis gummies, concentrates, and other raw materials used for edibles and vape cartridges – about $43 million more than what was seized during a 2019 raid, MJBizDaily reports.

In a press release, the Bureau of Cannabis Control said that Vertical Bliss – doing business as Kushy Punch – “inverted illegally manufactured product back into the regulated market.” The agency said the 2019 enforcement action “revealed significant quantities of cannabis concentrates, edibles, vape cartridges and raw materials.”

“Seized records document the production of more than 3.3 million Kushy Punch brand gummies during an 18-month period, with an estimated value of $64 million.” – BCC in a Sept. 24 statement

Following the raid, Kushy Punch lost its cannabis business licenses and could be fined up to $498 million for 527 days of illegal manufacturing and distribution.

Kushy Punch did not immediately respond to a request for comment.

In August, Lowell Farms reached a settlement with California regulators in its own case for operating without a license. According to MJBizDaily, the company agreed to pay the state nearly $550,000 but did not lose its business permits. Under the terms of the deal, $500,000 goes to the state, $33,560 is earmarked for the California Department of Food and Agriculture to cover attorney fees and investigation costs, and $12,852 goes to the Department of Fish and Wildlife for attorney fees, investigation expenses and the cost of destroying illegal cannabis that was seized during the raid.