New developments in the Kushy Punch lawsuit paint a grim picture for the company. It has been a year since Vertical Bliss, better known as Kushy Punch, was busted for making illicit THC cartridges. A new report from MJBizDaily indicates operations were more than three times larger than initially estimated.
As a result of a raid last year, Kushy Punch’s two California cannabis business licenses were revoked. The Los Angeles based company is expected to face fines up to $498 million.
The company’s internal records reported nearly $64 million in illegally manufactured gummies alone. Also included were concentrates and other raw cannabis materials used for making edibles and vape cartridges, according to the lawsuit.
Image Source: Leafly
After last year’s Canoga Park raid, the value was initially estimated at $21 million in illegal products seized. The raids in Canoga Park and Gardena led to the revocation of their licenses.
The complaint alleges that Vertical Bliss conducted unlicensed operations and inverted illegally manufactured products back into the regulated market.
If found guilty under California’s regulations of engaging in commercial cannabis operations without a license, they can be fined up to three times the amount of the cost of that license for each day of operation.
The number of days of illegal manufacturing and distribution of cannabis products the lawsuit alleges is 527 and could result in a maximum of $498 million.
The Kushy Punch lawsuit is not the first of it’s kind. The first lawsuit was brought against Lowell Farm and was settled out of court in July for $546,000. The government will always want their cut.