Key Points
- Case accuses vape maker and retailer of selling vapes exceeding legal THC limits.
- Judge dismissed breach of warranty claims against manufacturer Savage Enterprises.
- Claims under the Arkansas Drug Dealer Liability Act rejected.
- RICO and fraud claims upheld; case proceeds against Cigarette Store LLC.
- Plaintiffs allege misleading labels claiming <0.3% THC.
2Firsts, Nov. 10, 2025 — According to Law360, an Arkansas federal judge has partially dismissed a proposed class action accusing vape manufacturer and retailer defendants of conspiring to sell products containing THC levels above the legal threshold.
In an order issued Thursday, U.S. District Judge Brian S. Miller found that plaintiffs Angela Smith and Sharon Jackson failed to give proper notice of breach of warranty to Savage Enterprises LLC, the manufacturer, but allowed the same claim to proceed against Cigarette Store LLC, the retailer.
The court also dismissed all claims under the Arkansas Drug Dealer Liability Act, ruling that plaintiffs did not notify narcotics authorities at least six months before filing suit, as required.
Other defendants include Matthew Winters, Christopher Wheeler, and Preston Wheeler, officers of Savage Enterprises and ACS Laboratory LLC, which allegedly issued fraudulent certificates of analysis for the vape products and has not yet responded to the complaint.
Judge Miller denied the defendants’ bid to dismiss the Racketeer Influenced and Corrupt Organizations Act (RICO) claims, finding that the plaintiffs have sufficiently alleged a conspiracy to manufacture and sell illegal products. He noted that the law does not require every participant in a RICO enterprise to be named as a defendant.
The judge also upheld the plaintiffs’ fraud claims, stating they had sufficiently alleged that they were misled by product packaging and labels claiming THC content of less than 0.3%.
Similarly, negligence claims will proceed. The court found the plaintiffs had adequately described the products purchased and the actions each defendant allegedly took.
Judge Miller also denied motions to dismiss fraudulent transfer claims, determining that the plaintiffs sufficiently alleged that individual defendants diverted company funds to shield them from potential liability.
Image Credit: Law360
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