Federal judge denies request to temporarily block Indiana ban on popular hemp products
EVANSVILLE — Indiana's defacto prohibition of popular hemp-derived products can remain in effect, a federal judge ruled last week, even as aggrieved business owners and industry advocates fight the ban in court.
The plaintiffs in the case − all stakeholders in the region's hemp industry − had petitioned a U.S. District Court judge in Indianapolis to issue a preliminary injunction nullifying the state's ban on Delta 8 THC, and other hemp-derived cannabinoids, while the lawsuit continued.
In an order handed down Friday, Judge James. R. Sweeney II wrote that the three plaintiffs, 3Chi LLC, the Midwest Hemp Council, and Evansville-based Wall's Organics, had not "established irreparable harm and therefore are not entitled to a preliminary injunction."
Sweeney also highlighted the plaintiff's failure to quantify losses in revenue they attributed to the ban. In earlier filings, the plaintiffs argued that their true losses were essentially "unknowable" due to volatility in the hemp market and other difficult-to-quantify factors associated with the ban.
The ruling marked a symbolic victory for state Attorney General Todd Rokita, a defendant in the case who has in recent weeks lobbied Congress to ban "intoxicating" hemp products nationwide. But it is Rokita's handling of hemp in his home state that has the industry on pins and needles.
Background: Rokita takes a stand on "intoxicating" hemp products
Delta 8 THC and an assortment of similar compounds rocketed to popularity in 2018 after Congress revamped that year's Farm Bill, greatly expanding commercial hemp production. Delta 8 THC, which is manufactured by modifying a compound found in hemp, is nearly identical to the primary psychoactive substance in marijuana, Delta 9 THC — though anecdotal reports and research suggest Delta 8 THC is less potent.
For years, Hoosiers could buy Delta 8 THC and other hemp-derived products from local mom-and-pop shops, at so-called "dispensaries" and run-of-the-mill head shops. That changed in mid-2023 after Rokita issued a controversial legal opinion that effectively outlawed Delta 8 THC in Indiana.
Delta 8 Crackdown: Delta 8, other hemp products pulled from Evansville shelves amid statewide crackdown
In June, 3Chi LLC, a hemp product formulator and wholesaler, and its two co-plaintiffs filed suit in federal court, arguing that Rokita had based his opinion on faulty science and had overstepped his authority as attorney general.
Besides Rokita, four local law enforcement officials are named as defendants in the suit: Vanderburgh County Prosecutor Diana Moers, Evansville Police Department Assistant Chief Nathan Hassler, Huntington County Prosecutor Jeremy Nix and Huntington Police Department Detective Darius Hillman.
According to court records, Moers and Hassler are named in the suit for working to put Rokita's legal opinion into practice last year by informing shop owners, including Matt Wall of Wall's Organics, that the products outlined in Rokita's opinion had to go.
What to watch as case moves ahead
With the plaintiff's motion for a preliminary injunction denied, Sweeney wrote last week that the court could now evaluate two motions to dismiss filed by the defendants.
The first, filed Oct. 12 on behalf of the Huntington Police Department and Hillman, states that the plaintiffs had not shown they incurred injury or financial loss due to HPD actions and that neither the department nor Hillman could redress their grievances.
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On Oct. 30, Rokita, Moers and Nix filed their own motion to dismiss "for lack of jurisdiction and failure to state a claim on which relief can be granted." The motion also cites "sovereign immunity" protections for state officials.
According to court records, the parties discussed the status of discovery in the case and "readiness for a settlement conference" on March 18. Sweeney wrote in his Friday order that the court would issue rulings regarding "jurisdictional issues," the motions to dismiss, and a motion for judgment
This article originally appeared on Evansville Courier & Press: Indiana Delta 8 THC ban to stay in place during legal challenge
