A subsidiary of multi-state cannabis operator Jushi Holdings Inc., known as Dalitso LLC, has filed a lawsuit in the Circuit Court of Arlington County, Virginia, against several major retail and delivery companies — including DoorDash Inc. and Total Wine & More — over the alleged sale of hemp-derived products containing THC in violation of state law.
According to the complaint, Dalitso accuses the defendants of engaging in a “deliberate and coordinated scheme” to undermine Virginia’s tightly regulated medical cannabis market. The suit claims that these companies marketed and distributed intoxicating hemp-derived cannabinoid products that bypass the oversight, testing, and licensing requirements imposed on legitimate medical cannabis operators.
The case centers on the legal definitions and thresholds surrounding hemp and THC content. While the 2018 federal Farm Bill allows hemp to contain up to 0.3 percent delta-9 THC by dry weight, Virginia enacted stricter rules in 2023, limiting total THC content in hemp-derived consumables to 2 milligrams per package. Dalitso argues that the products sold by the defendants exceed this state limit, giving unregulated businesses an unfair advantage over licensed cannabis dispensaries.
The lawsuit seeks a jury trial and more than $80 million in damages, citing lost revenues and unfair competition stemming from the alleged illegal sales.
DoorDash is specifically called out for its expansion into hemp-derived THC and CBD product delivery in select states earlier this year. The company reportedly partnered with retailers such as Total Wine to include edibles and beverages infused with cannabinoids on its platform. Dalitso contends that while it supports lawful hemp commerce, it is challenging businesses that “shortcut the process” and operate outside the established regulatory system.
The dispute comes amid an ongoing policy gray area in Virginia. Although the state legalized adult possession of cannabis in 2021, retail sales for recreational use remain prohibited. Dalitso’s lawsuit argues that this gap in the law has enabled a flood of unregulated hemp-THC products to reach consumers without proper oversight.
The case could set an important precedent for how hemp-derived THC products are defined, marketed, and sold — not just in Virginia but nationwide. As similar disputes arise across the country, courts and lawmakers may soon be forced to clarify where hemp ends and marijuana begins in the fast-evolving cannabinoid marketplace.
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