business

Texas hemp companies sued by medical marijuana operator

Austin-based Texas Original accuses hemp companies of selling illegal marijuana products and misleading consumers.

Published June 5, 2026 at 6:39pm by Paul Flahive


As Texas lawmakers and regulators continue to grapple with the future of hemp-based products, Austin-based Texas Original Compassionate Cultivation has filed a lawsuit against several hemp companies, alleging they are selling marijuana products as legal hemp. Texas Original claims that the largely unregulated market is degrading the value of its rare and valuable state license to sell low-THC medical marijuana through the state's Compassionate Use Program. Texas Original argues that hemp businesses are increasing THC levels beyond legal limits and lying about it. The lawsuit alleges 10 companies are selling marijuana products as legal hemp, marketing them deceptively and offering products that may contain contaminants. Texas Original has commissioned independent national labs to test the defendants' products to prove they exceed the legal limit for THC.