A California-based cannabis company Kushy Punch was last week fined a total of $128 million for being involved in a syndicate to produce cannabis products at an illegal facility in California. While Kushy Punch has a license to produce cannabis, the law requires that all production takes place at a licensed facility and not anywhere else. In 2019, police raided an illegal facility in Canoga Park and seized 464 million worth of CBD gummies branded for Kushy Punch. A Los Angeles judge concluded the case last week by fining Vertical Bliss which operates as Kushy Punch a sum of $128 million. The defendant, Vertical Bliss, did not provide any substantive objection to the fine.
The director of the Department of Cannabis Control (DCC) is happy with this ruling. “We applaud the Court for its commitment to enforcing the rule of law in California’s cannabis industry,” she said in a press statement. This is the highest fine that has ever been given for such an offense in California.