Supreme Court Allows RICO Lawsuit Over Misleading CBD Claims

In a 5-4 decision, the Court ruled that a truck driver can sue for financial harm caused by a mislabeled CBD product, setting a precedent for RICO's application in consumer cases.

• Douglas Horn, a truck driver, claims he was fired after using a CBD product falsely advertised as THC-free, which led to a failed drug test.
• The Supreme Court ruled that financial harm to earning potential qualifies as a business injury under RICO, allowing Horn to seek triple damages.
• Justice Amy Coney Barrett authored the majority opinion, rejecting the company's argument that RICO does not cover such claims.
• Dissenting justices and the U.S. Chamber of Commerce warned the decision could increase lawsuits against businesses, expanding RICO's scope.
• The ruling does not resolve whether the product contained THC, leaving Horn's underlying claims to be determined in lower courts.

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