As marijuana use continues to increase, the potency of many strains is driving litigation—even as stronger alternatives hit the market.
Medical cannabis is now legal in 40 states, and 24 states have legalized recreational cannabis. Nearly three in four Americans (74%) live in a state that allows either medical or recreational use.
There are about 15,000 dispensaries in the United States, and the industry sees $28.8 billion in annual sales of medical and recreational marijuana.
Research into the drug and its effects has also grown. “The other consequence of our evolving laws is health researchers now have expanded access to study the potential health impacts of marijuana,” said Greg Scoblete, principal on Verisk’s emerging issues team, in a Verisk webinar on cannabis and other psychoactives. “In the past two years, we’ve really seen a surge in this kind of work.”
Researchers have found both positive and negative effects. On the plus side, one study found medical marijuana patients over the age of 65 saw a significant improvement across all measures of well-being. Another found that low doses of THC in mice restored cognitive abilities in older mice.
But adverse effects have been found too. Research has found users tend to have higher levels of heavy metals, like cadmium and lead, in their bodies. Regular users may be at higher risk of heart attack or stroke, and use during pregnancy has been linked to an increase in childhood cancer.
Potency can be a big factor. High-potency THC products have been linked to a heightened risk of psychosis. “Whatever popular perception of marijuana might be out there of it being an essentially harmless substance — that might be based on a marijuana that doesn’t exist anymore,” Scoblete said.
Recent litigation has focused on the issue of potency and potential mislabeling. A class action suit in Minnesota alleged some products had 20 times the amount of THC on the label, for example. On the flip side, other suits have claimed products had less THC than advertised.
Marijuana isn’t the only legal option for many people anymore. A few other drugs have been rising in popularity over the last several years, with their own sets of risks and liabilities.
Intoxicating hemp: Legal hemp contains a lot of psychoactive molecules, but in small amounts. These molecules have been chemically extracted and synthesized to create weed-like products that aren’t technically weed. In 2024, these products had grown into a $3.5 billion market, up 1,283% since 2020.
Some of these products are extremely potent, and at least one compound’s effects can be more like LSD than marijuana. “Individuals who might be expect a marijuana-like high from these products can be in for quite a surprise,” Scoblete said. One of the substances, Delta-8, has been outlawed in 13 states and is restricted or regulated in seven others.
Very little research has been done on the health impacts of these substances. But the FDA Adverse Event Reporting System has documented reactions to the products including death, hospitalization and disablement. Litigation so far has revolved less around health impacts and mostly around purity and labeling issues.
Kratom: Derived from leaves, kratom has been consumed in Southeast Asia for years. In low doses, it’s a stimulant, but in higher doses, it can have opioid-like effects. It’s now available in the form of extracts, gummies and concentrates in the United States. It’s sold in many smoke and vape shops, and up to 15 million Americans may use it.
The Drug Enforcement Administration has listed kratom as a drug of concern, and the Food and Drug Administration says it can’t be lawfully marketed as a drug product. Six states have banned kratom so far, and 16 states regulate its sale.
In 2024, kratom was linked to more than 150 deaths, and these have started to generate litigation against entities within the kratom supply chain. Last year saw a $11.6 million wrongful death award. At least two class action suits have been filed, one alleging that kratom is as addictive as opioids.
Because kratom is not exactly legal, it can often move through the supply chain as “vitamins” or “supplements.” This can impact importers, warehouses, trucking companies and others who might be handling it without knowing what it is.
Psychedelics: Use of mushrooms, or psilocybin, is on the rise, and social acceptance of other psychedelics like MDMA and LSD is also increasing. Preliminary research has found that microdosing — taking psychedelics in small doses — can treat issues like depression, anxiety and PTSD.
Colorado and Oregon have decriminalized the use of psychedelics, and several cities — San Francisco, Detroit and Seattle — have too. More research is still needed on the effects of the drugs, and they’re still only in use by a small percentage of the population.
