New Lawsuit Accuses CCELL of Price-Fixing & Monopoly Tactics

LOS ANGELES — February 14, 2025 A class action lawsuit has been filed against Smoore, the parent company of CCELL, and its U.S. distributors, accusing them of engaging in illegal price-fixing and monopolistic practices that have driven up costs in the cannabis vape hardware market. The suit, initiated by Arizona-based Earth’s Healing, Inc., claims violations of the Sherman Act and accuses Smoore of colluding with major distributors such as Jupiter Research LLC, Greenlane Holdings, and others to suppress competition and inflate prices.

Anti-Competitive Practices Alleged

The lawsuit outlines several accusations of anti-competitive actions, including:

• Enforcing minimum price policies to block distributors from offering more competitive prices.
• Leveraging patent litigation to push smaller competitors out of the market.
• Agreeing to non-compete terms that strengthened Smoore’s market dominance in the cannabis vape hardware industry.

Legal History

This lawsuit follows a series of legal battles, notably a 2021 International Trade Commission (ITC) case in which Smoore accused several U.S. vape companies of patent infringement. While the high cost of litigation pushed many small companies out, the ITC ultimately ruled against Smoore, invalidating at least one of its significant patents. Despite this, Smoore allegedly continued to file lawsuits against competitors and maintain restrictive pricing practices with its distributors.

Impact on the Cannabis Vape Sector

Should the claims be substantiated, the lawsuit could have major consequences for the cannabis vape industry. Rising hardware costs have been a persistent issue for cannabis brands, which in turn increases consumer prices. The suit argues that Smoore’s actions have stifled innovation and limited access to more affordable vaping options.

Michael Brosgart, president of Next Level Ventures LLC (ACTIVE), which previously filed counterclaims against Smoore for similar anti-competitive actions, commented:

“The plaintiffs’ price-fixing allegations aren’t surprising. ACTIVE was the first to hold Smoore accountable for its monopolistic conduct, and our preliminary expert damages analysis suggests that ACTIVE is entitled to nearly $200 million in damages due to Smoore’s unlawful practices in the cannabis vape market. The class plaintiffs could be owed even more.”

Potential Industry Repercussions

This lawsuit represents a significant escalation in the ongoing antitrust challenges within the cannabis vape hardware sector. A successful legal outcome could lead to increased competition, lower prices, and more diverse product offerings for both cannabis brands and consumers. A favorable ruling could potentially disrupt the current market dominance of Smoore and pave the way for new competitors.

As the case unfolds, industry observers will closely monitor how the court addresses this highly contentious legal battle in the cannabis vape space.

Stay tuned for further updates on this developing story.