Lawsuit compares cannabis industry to Big Tobacco, targets 3 Chicago-based marijuana companies

CHICAGO - A federal class-action lawsuit is drawing comparisons between the cannabis industry and Big Tobacco.

The suit alleges three Illinois-based marijuana manufacturers deceptively marketed cannabis products as helping to treat medical conditions while downplaying or failing to adequately warn consumers about potential risks.

The backstory:

The complaint spans more than 300 pages and centers on whether consumers are being given a clear picture of the marijuana products they are buying.

Filed in early May, the lawsuit takes on Cresco Labs, Green Thumb Industries, and Verano Holdings, which are all headquartered in Chicago.

The complaint states the companies "deceptively marketed" cannabis products as helping to treat mental and physical ailments — including anxiety, pain, insomnia, and autoimmune disorders — even though marijuana is not FDA-approved to treat those conditions. 

The lawsuit states: "Cannabis purveyors market and promote their cannabis products to an unsuspecting public through a public relations megaphone as the antidote to ailments of all kinds, including, among others, insomnia, narcolepsy, over-eating, cancer, auto-immune disorders, neuropathy, pain, anger, boredom, sadness, shyness, irritable bowel syndrome, grief, and opioid addiction. These claims are part of a calculated strategy in which the cannabis industry, including Defendants Cresco Labs, Green Thumb, Verano Holdings, and Verano LLC, have unleashed an acute intoxicant — tetrahydrocannabinol ('THC') — at unprecedently high concentrations on its customers."

The suit also points to research linking cannabis use to mental health conditions like schizophrenia, depression, and anxiety.

The complaint cites several studies, including a 2017 report from the National Academy of Sciences: "[T]here is substantial evidence of a statistical association between cannabis use and the development of schizophrenia or other psychoses, with the highest risk among the most frequent users."

Patrick Kenneally, the attorney representing the plaintiffs, says product labels need to spell out the risks, so people can make more informed decisions. 

"The cannabis industry has conducted a pervasive marketing scheme, which has misrepresented the nature of cannabis," said Patrick Kenneally, partner at Burke Law Group, PLLC. "There's a whole subclass of people who are really suffering mental health disorders as well as other physical ailments that they're not tying together with their cannabis use."

Kenneally, who previously served as the McHenry County State's Attorney, is also drawing similarities between the cannabis industry and Big Tobacco, before the public had tobacco warnings as we know them today.

"This is analogous to tobacco in the 1950s and the 1960s before people had the knowledge with respect to the health dangers of tobacco. And I think ultimately that's where this is going to go because the science is unassailable," Kenneally said. "What we ultimately need is a public education campaign, whether that's through labeling, whether that's through signage, or whether that is through package inserts. But ultimately at the end of the day, people need to be aware of these damages that they're not aware of because cannabis is so new and the marketing has been so slick."

The complaint also alleges economic harm — arguing customers overpaid or purchased products they otherwise wouldn't have, had they been given the full picture of the risks. 

What they're saying:

FOX Chicago reached out to all three companies named in the complaint for comment.
     
Verano Holdings replied, issuing the following statement:

"This lawsuit is part of a broader litigation campaign that plaintiffs’ counsel has brought against several multi-state cannabis operators, and mirrors claims that have been rejected by courts in similar legal actions against multi-state operators in the industry earlier this year.

"Verano operates in compliance with applicable state laws and regulations, including the detailed product labeling, testing, and warning requirements dictated by each state in which Verano is licensed. The medical use and benefits of cannabis have also long been recognized by the states themselves, as reflected in the comprehensive medical marijuana programs that state legislatures and regulators have established and overseen for years.

"More recently, and prior to the filing of this lawsuit, the federal government – through both the President’s December 2025 Executive Order and the Department of Justice’s April 2026 medical cannabis rescheduling order – has likewise formally recognized the accepted medical use of cannabis. We strongly disagree with the allegations and intend to defend the matter vigorously."

Verano Holdings submitted a list of dismissed cases to FOX Chicago, including one that alleged the cannabis company violated federal HIPAA regulations by printing patients' full names and dates of birth on payment receipts.

Kenneally said he was not involved in any of the lawsuits cited by Verano Holdings.

What's next:

Kenneally tells FOX Chicago litigation could play out over the course of several years.