Supreme Court Upholds Truck Driver's RICO Suit Against CBD Company

The U.S. Supreme Court upheld a lawsuit by Douglas Horn, a truck driver fired for a positive drug test after using CBD, against Medical Marijuana Inc. The Court ruled under the RICO Act, which targets organized crime, allowing Horn to pursue damages for his wrongful termination.

The U.S. Supreme Court ruled against Medical Marijuana Inc on Wednesday, favoring a lawsuit brought by truck driver Douglas Horn, who was fired after a drug test showed THC in his system. Horn took a CBD product he believed was THC-free, which led to his dismissal.

In a closely contested 5-4 decision, Justice Amy Coney Barrett backed a lower court's stance allowing Horn to pursue a civil lawsuit under the Racketeer Influenced and Corrupt Organizations Act (RICO). The RICO Act enables litigants to seek triple damages for injuries to business or property caused by criminal activities.

Horn argued his firing was due to misleading claims by Medical Marijuana about their product, turning the case into a 'pattern of racketeering activity', including mail and wire fraud. Though initially ruled against, Horn's appeal found success in the 2nd U.S. Circuit Court of Appeals, ultimately prompting the Supreme Court case.

(With inputs from agencies.)