Oahu Dispensary and Provisions, a Hawaii-based CBD retailer, has filed a pro se lawsuit in the U.S. District Court for the District of Hawaii alleging that a supplier sold it products falsely represented as CBD but containing unlawful levels of THC, the psychoactive component of cannabis. The retailer claims this misrepresentation led to law enforcement seizing multiple shipments and caused serious illness to one of its customers.
The complaint names three defendants, including Ankit Yadav, who reportedly operates as Califarms in Santa Rosa, California. According to the lawsuit, Oahu Dispensary purchased three shipments of supposed CBD products between late 2024 and early 2025, believing them to comply with legal THC limits. However, the products allegedly contained THC levels far above legal thresholds and were accompanied by forged laboratory certificates designed to conceal the violation.
“This case exemplifies the dangers posed by unscrupulous actors in the emerging CBD market who exploit regulatory gaps to sell illegal products across state lines, endangering businesses and consumers alike,” the complaint states.
The suit details that the defendants sold over $17,000 worth of these falsely labeled products to Oahu Dispensary. The last two shipments were seized following intervention by law enforcement authorities. The lawsuit further alleges that the defendants’ counterfeit certificates triggered UPS’s fraud detection system due to suspicious testing dates and impossible cannabinoid calculations.
On February 1, a customer of Oahu Dispensary reportedly suffered severe adverse reactions after consuming one of the tainted products, experiencing symptoms including anxiety, elevated heart rate, and temporary psychosis, necessitating emergency medical care. This incident led to a legal settlement with the affected customer.
Further investigation uncovered that one defendant was not properly registered with the state of Florida as required by law. Independent laboratories whose names were forged on the certificates have confirmed the documents were created without their consent.
The complaint includes ten causes of action, such as breach of contract and negligent misrepresentation, and seeks punitive damages exceeding $1 million, along with restitution for product costs and settlement fees.
Lance Alyas, owner of Oahu Dispensary and Provisions, did not immediately respond to requests for comment. The defendants have yet to be reached for comment.
Case Information:
Lance Alyas et al. v. Ankit Yadav et al., Case No. 1:25-cv-00210
U.S. District Court for the District of Hawaii
