Trulieve Cannabis Corp., the Florida-headquartered multistate marijuana operator led by CEO Kim Rivers, has faced a run of Trulieve lawsuits and regulatory actions covering payment-processing fraud, mislabeled edibles, a worker’s death, political influence over an Arizona license, defamation, securities claims, and a challenge to Florida’s dispensary cap. Most have ended in dismissals, settlements, or outcomes favorable to the company. A few remain open, and the company still carries significant tax exposure tied to its federal returns.
Cashless ATM Fraud Suit by Switch Commerce
On February 19, 2025, Texas payment processor Switch Commerce sued Trulieve, several Arizona subsidiaries, and Kim Rivers personally in Maricopa County Superior Court. The complaint alleged that Trulieve used “cashless ATM” terminals to disguise retail cannabis purchases as ATM cash withdrawals, sidestepping Visa and Mastercard rules that bar their networks from processing marijuana sales.1CRB Monitor. Cashless ATM Lawsuit Hits Trulieve
Point-of-sale devices were programmed to transmit Merchant Category Code 6011, reserved for authorized ATM withdrawals, and purchase amounts were rounded up to the nearest $10 with the difference returned to the customer as cash. The complaint said Trulieve reported over $700,000 in “dispensed cash” during April and May 2024 alone that actually represented in-store sales revenue.2Courthouse News Service. Dispensaries Defend Cashless ATM Smokescreen From Fraud Claims
Switch Commerce claimed fraud, negligent misrepresentation, unjust enrichment, conspiracy, and racketeering under Arizona’s RICO statute, alleging Trulieve acted with an “evil mind.”1CRB Monitor. Cashless ATM Lawsuit Hits Trulieve Trulieve responded that the terminals were run by third-party affiliates and that Switch itself understood how the transactions worked but processed them anyway to collect fees.2Courthouse News Service. Dispensaries Defend Cashless ATM Smokescreen From Fraud Claims Court records show the parties filed a settlement notice on March 24, 2026, and the case was dismissed.3UniCourt. Switch Commerce LLC vs. Abedon Saiz LLC Et Al
THC Edibles Class Action in Arizona
On March 21, 2025, Erik Watt filed a proposed class action in the U.S. District Court for the District of Arizona against Trulieve Holdings and more than 20 related entities. Watt v. Trulieve Holdings, Inc. et al. (No. 2:25-cv-00962-SPL) alleged that Trulieve sold edible marijuana products with THC levels far above state limits by labeling them as “marijuana concentrates” or “extracts.”4ClassAction.org. Trulieve Facing Class Action Lawsuit Over THC Content in Dispensarys Edibles
Arizona caps edible marijuana at 100 milligrams of THC per package; Florida caps it at 200 milligrams. The complaint alleged Trulieve’s products ran up to ten times those limits and asserted claims under the Arizona Consumer Fraud Act plus common-law fraud, fraudulent concealment, breach of implied warranty, and unjust enrichment. The amount in controversy exceeded $5 million.5ClassAction.org. Watt v. Trulieve Holdings, Inc. Et Al
Trulieve moved to dismiss on May 7, 2025, arguing the plaintiff lacked standing and that the labeling was accurate.6Law360. Trulieve Wants Cannabis Concentrate Potency Suit Tossed The court granted the motion on August 28, 2025, dismissing the case for lack of Article III standing. As of early 2026, the dismissal remains in effect while the plaintiff seeks reconsideration.7Cannabis Business Times. 10 Steps for Cannabis Operators to Avoid Product Liability in 2026
Worker Death and Massachusetts Safety Penalties
In January 2022, Lorna McMurrey, a 27-year-old employee at Trulieve’s cultivation and processing facility in Holyoke, Massachusetts, collapsed while filling pre-rolls with ground cannabis dust. She died three days later at Baystate Hospital. Her death certificate cited cardiac and respiratory arrest caused by a severe asthma attack.8NBC Boston. Family of Mass Cannabis Worker Who Died at Job From Asthma Attack Files Lawsuit A federal report by the U.S. Department of Health and Human Services and the CDC later identified her death as the first attributed to occupational asthma in a U.S. cannabis production worker, citing “missed opportunities for prevention, including control of workplace exposures, medical surveillance and treatment.”9Cannabis Business Times. Mother of Trulieve Cannabis Worker Who Died Testifies on Workplace Safety Bill
McMurrey had been hospitalized after a work-related asthma attack on November 9, 2021, about two months before her death. Regulators said Trulieve failed to reassess workplace hazards or offer her a different role after that first incident.10MJBizDaily. Trulieve Fined $350K Over Massachusetts Marijuana Workers Death OSHA issued more than $35,000 in fines for workplace hazard communication violations, which Trulieve contested and settled for $14,502, agreeing to study the hazards of ground marijuana dust.8NBC Boston. Family of Mass Cannabis Worker Who Died at Job From Asthma Attack Files Lawsuit
On June 13, 2024, the Massachusetts Cannabis Control Commission approved a $350,000 settlement with Trulieve for failure to process marijuana safely, failure to provide adequate protective equipment, and failure to reassess hazards after McMurrey’s first hospitalization. Trulieve did not admit or deny the findings and had already surrendered its Massachusetts licenses.11Massachusetts Cannabis Control Commission. Final Order and Stipulated Agreement – Life Essence Inc. dba Trulieve McMurrey’s family also filed a wrongful death suit in Hampden County Superior Court.8NBC Boston. Family of Mass Cannabis Worker Who Died at Job From Asthma Attack Files Lawsuit
Arizona License Political Influence Suit
In February 2024, the Arizona Department of Health Services settled a case with Sherri Dunn LLC, a Trulieve subsidiary, granting a dual recreational and medical marijuana license after an administrative law judge and a superior court judge had denied the application. Reporting by the Arizona Capitol Times said Trulieve lobbyist Wendy Briggs had contacted Governor Katie Hobbs’ chief of staff, Chad Campbell, about the license dispute.12Arizona Capitol Times. Cannabis Company Alleges Gov Hobbs Aide Improperly Intervened in Marijuana License Case
On April 13, 2025, marijuana entrepreneur Mason Cave and his company Arizona Wellness Center Springerville sued the Arizona Department of Health Services, Governor Hobbs, Campbell, and Sherri Dunn LLC in Maricopa County Superior Court. The complaint alleged the settlement violated the Arizona Constitution’s Gift Clause, claiming the license was worth roughly $10 million but issued for a $25,000 application fee.13AZ Central. Top Hobbs Aide Put Thumb on Scale in Cannabis Dispute, Lawsuit Alleges
The Governor’s Office denied any impropriety and said the health department settled independently to avoid costly litigation the state was likely to lose under an Arizona Supreme Court precedent.12Arizona Capitol Times. Cannabis Company Alleges Gov Hobbs Aide Improperly Intervened in Marijuana License Case On October 14, 2025, Judge Joseph Kreamer dismissed the case in full, ruling that plaintiffs lacked standing and that regulatory licenses do not fall under the Gift Clause. The judge described the earlier settlement as “normal litigation.”14Arizona Capitol Times. Cannabis Lawsuit Against ADHS Governor and Chief of Staff Dismissed
Defamation Suit Against the Florida Republican Party
In 2024, Trulieve sued the Republican Party of Florida for defamation over advertisements opposing Amendment 3, a ballot measure that would have legalized recreational marijuana. Trulieve had funded most of the roughly $150 million raised by the pro-legalization Smart & Safe Florida campaign and alleged the ads were “intentionally deceptive,” including false claims that the amendment would create a corporate monopoly and prevent home cultivation.15Marijuana Moment. Florida Judge Dismisses Marijuana Companys Defamation Lawsuit Against State Republican Party Over Legalization Campaign
Amendment 3 failed in November 2024, receiving a majority of votes but falling short of Florida’s 60% supermajority for constitutional amendments. Judge Ronald W. Flury of the Second Judicial Circuit later dismissed the defamation suit with prejudice, finding the ads were “sufficiently accurate” and that Trulieve failed to establish the elements of the claim. Because the dismissal was with prejudice, Trulieve cannot refile.15Marijuana Moment. Florida Judge Dismisses Marijuana Companys Defamation Lawsuit Against State Republican Party Over Legalization Campaign
Securities Class Action
In late 2019 and early 2020, two shareholder suits were filed against Trulieve, CEO Kim Rivers, and then-CFO Mohan Srinivasan in the U.S. District Court for the Eastern District of New York. David McNear v. Trulieve Cannabis Corp. et al. (No. 1:19-cv-07289) and Monica Acerra v. Trulieve Cannabis Corp. et al. (No. 1:20-cv-00775) were consolidated as In re Trulieve Cannabis Corp. Securities Litigation. Plaintiffs alleged materially false and misleading statements about financial results, real estate transactions, and product quality, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act and SEC Rule 10b-5.16U.S. Securities and Exchange Commission. Trulieve Cannabis Corp. SEC Filing – Commitments and Contingencies
The court granted Trulieve’s motion to dismiss, and final judgment was entered on March 11, 2022, dismissing all claims with prejudice.16U.S. Securities and Exchange Commission. Trulieve Cannabis Corp. SEC Filing – Commitments and Contingencies
Florida Dispensary Cap Challenge
In 2018, Trulieve sued in Leon County Circuit Court to overturn a Florida law capping medical marijuana dispensaries at 25 per company. CEO Kim Rivers called the cap “arbitrary” and said it forced expensive delivery workarounds instead of new retail locations.17Tallahassee Democrat. Trulieve Sues State Over Cap on Medical Marijuana Dispensaries
In February 2019, Judge Karen Gievers ruled in Trulieve’s favor, declaring the cap unconstitutional. The state appealed, but the Florida Department of Health dropped the appeal in April 2019 and settled. Trulieve was allowed to operate up to 49 dispensaries, with 14 pre-existing locations excluded from the cap. Both sides asked the appellate court to vacate Judge Gievers’ ruling, so the outcome applied only to Trulieve rather than the industry at large.18WUSF. State Settles With Trulieve Over Marijuana Dispensary Caps
IRS 280E Refunds and Current Litigation Exposure
By the end of January 2024, Trulieve had received about $113 million in tax refunds from the IRS on amended federal returns related to Section 280E, which bars businesses trafficking in controlled substances from deducting ordinary business expenses. Rivers described the legal strategy as a “trade secret.” No court ruling accompanied the refunds; they came through administrative claims on amended returns, and the IRS could still audit and seek to recover the money. As of the quarter ending September 30, 2025, Trulieve carried more than $150 million in uncertain tax position liabilities on its balance sheet.19MJBizDaily. Trulieve Cannabis Reports Receiving $113 Million in 280E Tax Refunds
In its most recent quarterly SEC filing, covering the period through September 30, 2025, Trulieve reported $0.8 million in contingent liabilities related to pending litigation, down from $6.3 million at the end of 2024. The company said no pending or threatened lawsuits could reasonably be expected to have a material effect on its financial results.20Trulieve Cannabis Corp. Trulieve Form 10-Q for the Period Ended September 30, 2025