Smoore's Subsidiary CCELL Faces Antitrust Lawsuit in the U.S., Accused of Price Manipulation and Market Monopoly

Jul.03.2025
Smoore's Subsidiary CCELL Faces Antitrust Lawsuit in the U.S., Accused of Price Manipulation and Market Monopoly
A U.S. federal court in Arizona has recently accepted a class-action lawsuit against Chinese e-cigarette manufacturer Smoore and its U.S. distributor. The suit accuses them of monopolizing the U.S. cannabis vape market through price manipulation and market division, resulting in higher costs for consumers. This marks the second such case filed this year.

Key Points:

 

·Monopoly Accusation: Smoore is accused of manufacturing 80% of the closed-system marijuana oil e-cigarette devices in the United States and forcing distributors to adhere to minimum pricing and prohibiting the sale of competing products. 

 

·Anticompetitive Behavior: The lawsuit alleges that Smoore conspired with distributors for ten years, sharing pricing data, dividing the market, and collecting $500,000 in security deposits to prevent violations. 

 

·Legal Basis: The plaintiffs are seeking compensation under the Sherman Antitrust Act, the Clayton Antitrust Act, and laws of 31 states for the high prices consumers have faced due to monopolistic practices. 

 

·Case Status: Smoore has not yet responded, and the case is filed under docket number 2:25-cv-02259 in the Federal Court of Arizona. 

 


【2Firsts news flash】According to a report by Law 360 on July 2nd, the Chinese marijuana e-cigarette brand CCELL and its several American distributors are accused of engaging in anticompetitive price manipulation to gain market dominance. This class-action lawsuit is the second this year to make similar allegations.

 

According to a lawsuit filed on June 28 in a federal court in Arizona, Shenzhen Smoore Technology Co. Ltd. and Smoore International Holdings Ltd. devised a plan to allocate market dominance by requiring distributors to agree to minimum prices and prohibiting them from selling competing products.

 

The complaint alleges that "Smoore is the monopolist in the American market for the production of closed-loop cannabis oil e-cigarette devices, manufacturing up to 80% of the products in the United States and selling them directly to cannabis producers and wholesale distributors, including the defendant distributor.

 

According to the lawsuit, Smoore is both a supplier to the distributor defendants mentioned in the lawsuit, as well as a competitor, including the largest CCELL product distributor in the United States, Jupiter Research LLC. Despite these distributors helping Smoore establish a monopoly, the lawsuit indicates that they were forced to do so in order to continue accessing these popular products.

 

"Smoore's dominant market share has put distributors accused in a position where they must choose between either participating in Smoore's anti-competitive plan or facing the consequences of being unable to do business with Smoore. This would entail the risk of losing a crucial supply source, which holds as much as 80% of the market share in the closed-loop cannabis oil vaporization system market in the United States."

 

This class action lawsuit seeks damages under the Sherman Antitrust Act and the Clayton Antitrust Act, as well as under the antitrust laws and consumer protection laws of 31 states and regions in the United States.

 

The claims in this lawsuit are similar to a lawsuit filed in a federal court in California, but the earlier lawsuit was filed by a marijuana retailer based in Arizona, which sought compensation as a business harmed by monopolistic practices. The current lawsuit is partly based on the theory that consumers who had to pay higher prices due to these monopolistic practices are seeking compensation.

 

The complaint states that this pattern of horizontal price fixing, market division, and exclusive dealing began nearly a decade ago.

 

According to the complaint, the retailers allege that Smoore and its distributors conspired not to compete for each other's customers, as well as not to charge customers fees lower than the agreed upon price for CCELL products. The accused distributors include Jupiter, CB Solutions LLC (better known as Canna Brand Solutions), and Greenlane Holdings Inc., all of which are named defendants in the California lawsuit.

 

The lawsuit alleges that Smoore demanded distributors to share confidential pricing data and customer information with each other on a monthly basis. All distributors were required to avoid competing with each other. Each distributor was also required to pay a $500,000 deposit. If Smoore found that someone violated the terms of the illegal agreement, they would deduct funds from the violator's deposit.

 

On June 25th, representatives of the company in question did not immediately respond to requests for comment. The lawyer information for the company in question has not yet been disclosed.

 

This class action lawsuit is being represented by Cristina Perez Hesano of Perez Law Group PLLC.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

AHA Journal Study: WS-23 Triples Premature Heartbeats, Raising Concerns Over Vape Cooling Agents
AHA Journal Study: WS-23 Triples Premature Heartbeats, Raising Concerns Over Vape Cooling Agents
A University of Louisville research team published a study in an American Heart Association journal suggesting that synthetic cooling agents used in e-cigarettes, including WS-3 and WS-23, may disrupt cardiac electrical activity and increase arrhythmia risk. In animal experiments, WS-23 tripled premature heartbeats.
Jun.16
Product | Republic Technologies Launches ZIG Nicotine Pouches, Expanding Beyond Traditional Tobacco Accessories
Product | Republic Technologies Launches ZIG Nicotine Pouches, Expanding Beyond Traditional Tobacco Accessories
Republic Technologies UK has entered the nicotine pouch market with ZIG Nicotine Pouches, marking the company’s expansion beyond traditional tobacco-related accessories into smoke-free nicotine products. The product is expected to enter UK retail channels from August 2026, including convenience stores, supermarkets and tobacco retailers. The launch includes six flavors and three nicotine strengths: 8mg, 12mg and 17mg.
Market
Jul.21 by 2Firsts Perspectives
Vape Vending Machine Concerns Rise in German-Speaking Europe as Schools and Age Checks Come Into Focus
Vape Vending Machine Concerns Rise in German-Speaking Europe as Schools and Age Checks Come Into Focus
Recent reports from Germany and Switzerland show growing concern over vape and tobacco vending machines near schools or in public settings, with parents, teachers and residents questioning youth access, age-verification controls and the sale of vapes alongside snacks and drinks.
Jul.06
Data|China’s January-May 2026 Device Exports Rise 13% While Nicotine Product Exports Decline 6.9%
Data|China’s January-May 2026 Device Exports Rise 13% While Nicotine Product Exports Decline 6.9%
According to China Customs export data analyzed by 2Firsts, China’s vape export mix continued to evolve during January-May 2026. Exports of electronic vaporisation devices (HS 85434000) increased 13.00% year on year, supported by growth in both shipment volume and average export prices. Meanwhile, exports of nicotine-containing non-combustible products (HS 24041200) declined 6.89%, with lower shipment volumes partly offset by higher average export prices.
Special Report
Jun.30
WIRED Investigation: Chinese-Made Vapes Turn to 6-Methyl-Nicotine and Other Analogs, Challenging U.S. Regulation
WIRED Investigation: Chinese-Made Vapes Turn to 6-Methyl-Nicotine and Other Analogs, Challenging U.S. Regulation
U.S. technology and investigative publication WIRED has examined how nicotine analogs are emerging as a new challenge for the country’s vape regulatory framework. The article argues that after the U.S. expanded federal oversight of nicotine products in 2022, some manufacturers began using nicotine-like compounds such as 6-methyl-nicotine that may fall outside existing definitions. Researchers cited by WIRED said some nicotine analogs could be more potent than traditional nicotine, although human health impacts remain unclear. U.S. policymakers are considering broader definitions of nicotine to bring these compounds under federal oversight.
Jul.27
Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Police in Malaysia’s Selangor state seized illegal vape products and contraband cigarettes worth about RM12.7 million (approximately $3 million) in two enforcement operations. According to New Straits Times and The Star, the vape-related operation uncovered 131,036 boxes of vape products, 4,900 bottles of e-liquid and 25,510 vape devices, valued at about RM9.4 million. Police said preliminary investigations indicated that some illegal vape products entered Malaysia through sea shipments from China before moving through storage and distribution networks.
Aug.10