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Jury Finds LoneStar Farms, LLC, “d/b/a” Sweet Sensi Committed Constructive Fraud Against CenTex CBD

LoneStar Does Not Own Trade Secrets Listed in Court Filings

CenTex CBD beat back a claim by LoneStar Farms LLC, better known as Sweet Sensi, and their lawyer, Lisa Pittman, of misappropriation of trade secrets and intellectual property and allegations of unethical conduct. This ruling of Constructive Fraud and other charges against Sweet Sensi will have significant implications for the rapidly growing and changing hemp industry in Texas.

During the case, Greg Autry of Sweet Sensi attacked Wyatt Larew of Wyatt Purp and the Texas Hemp Reporter in an advertisement published in The Austin Chronicle on October 25, 2024. The jury verdict completely vindicated Larew and the Texas Hemp Reporter for its initial coverage of the case.

“Sweet Sensi tried to cover up its bad behavior and questionable business practices by attacking me. I am grateful that the jury ruled in CenTex’s favor and vindicated me. I am disappointed in my former attorney, Lisa Pittman, who took a contradictory position after providing a legal opinion for me. Justice is the winner this week. Also, Hemp businesses in Texas won because bad actors need to be exposed, and ethical standards must be respected,” said Larew.

The conduct of Sweet Sensi’s lawyer, Pittman, has come into question. During the legal process, Pitman moved the case to District court from small claims court, which allowed Sweet Sensi to counter-sue for $250k-1 million in damages. While the trial was progressing, CenTex asked the judge to sanction Pittman. The judge agreed and sanctioned her. Additionally, the judge found it necessary to remind Pittman of her Fifth Amendment right against self-incrimination, raising the concern that her actions could be viewed as criminal, not just unethical.

“The Texas Hemp Reporter bases our reporting on court filings and public documents. Factual court reporting does not require commentary for the parties involved to “spin” us with their interpretation of court proceedings,” said Russell Dowden, Publisher of the Texas Hemp Reporter.

In this case, the jury ruled that Sweet Sensi did not own certain trade secrets, which contradicts what Autry of Sweet Sensi said in his paid advertisement.

“In my opinion, the jury did a good job seeing through the thinly veiled arguments presented by Sweet Sensi attempting to misuse trade secrets and the patent process. Hemp businesses must maintain their integrity so we can continue to supply products for the people who need them the most,” said David Sergi, Attorney for Wyatt Purp and other hemp-related businesses.

{What Does the Future of Hemp hold for the Lone Star State? Operators will be more accountable to retailers moving forward.}

In addition to finding Sweet Sensi committed constructive fraud, the jury returned unanimous verdicts, finding that Sweet Sensi engaged in false, misleading, deceptive, and unconscionable actions when the jury answered the following questions.

  • Did LoneStar engage in any false, misleading, or deceptive act or practice that CenTex relied on to its detriment and that was a producing cause of damages to CenTex? Jury said Yes.
  • Did LoneStar engage in any unconscionable action or course of action that was a producing cause of damages to CenTex? Jury said Yes.
  • Did CenTex and LoneStar agree that CenTex’s cherry limeade gumdrops ordered from LoneStar would come with red sugar and contain approximately 15 mg of Delta 8 per gumdrop? Jury said Yes.
  • Did CenTex and LoneStar agree that LoneStar would provide shelf-ready/consumer-ready gumdrops to CenTex? Jury said Yes.
  • Did LoneStar fail to comply with its agreement with CenTex, if any? Jury says Yes.
  • Did CenTex substantially rely to its detriment on LoneStar’s promises), if any, and, if so, was CenTex’s reliance foreseeable by LoneStar? Jury said Yes.
  • Did LoneStar obtain a benefit from CenTex by fraud or the taking of an undue advantage? Jury said Yes.
  • Did LoneStar fail to comply with the Manufacturing Service Agreement? Jury said Yes.
  • Did LoneStar own a trade secret in the formula, pattern, compilation, program, method, technique, process, or list of actual or potential customers listed below?
    • 1. The rosin-based process used to design and manufacture LoneStar’s rosin-based products. Jury said No.
    • 2. The process for designing and manufacturing LoneStar’s rosin base. Jury said No.
    • 3. The process for designing and manufacturing LoneStar’s rosin-based products. Jury said No.
    • 4. The process for designing and manufacturing LoneStar’s vape cartridges and gummy products. Jury said No.

In addition to these findings, LoneStar Farms LLC dba Sweet Sensi must pay monetary damages to CenTex CDB.

Additional steps related to the people and businesses involved in this case will be taken in the coming weeks. We will continue to inform the public about any developments.

For media interviews. Please contact Kevin Lampe at (312) 617-7280 or [email protected].

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Bulk THCA Flower: A Convenient and Legal Option for Texas Consumers

As the popularity of cannabis products continues to rise, many consumers in Texas are seeking
simple and legal ways to stock up on THCA flower. Buying THCA flower in bulk has become a
convenient option, with legal avenues now available for doorstep delivery. This shift allows
consumers to easily acquire various strains without leaving the comfort of their homes.

One of the primary benefits of purchasing THCA flower in bulk is the ease of access to a wide
selection of strains. Retailers such as Zaza Distro provide a diverse range of options, offering
both online purchases through their website and direct orders via Telegram. The cost for bulk
THCA flower ranges significantly, from $400 to $1900 per pound, with substantial discounts
available for large orders, making it an attractive option for resellers and heavy consumers
alike.

 

close up view of marijuana buds on white background, panoramic shot

When selecting THCA flower, it is crucial to consider factors such as quality, potency, and
legality. Buying from reputable retailers ensures that the products are lab-tested and compliant
with the Farm Bill regulations, which stipulate that THCA hemp flower must contain less than
0.3% Delta 9 THC by dry weight. This compliance guarantees that consumers are purchasing
safe and legal products.

The variety of available strains is another compelling reason to consider bulk purchases. Each
strain offers unique characteristics in terms of flavor and effects. Popular strains like Gushers
and Gelato 45 are favored for their taste and strength, while other options such as Blueberry
Gas, Bruce Banner, and Cookie Dough provide a range of experiences from relaxing to
invigorating. With such a vast selection, consumers can tailor their purchases to their specific
preferences and needs.

Bulk purchasing not only offers variety but also comes with additional perks. Retailers often
provide excellent customer support and tracking options, ensuring a smooth buying experience
from order placement to delivery. This customer-focused approach enhances the overall
satisfaction and convenience of buying in bulk.

Pricing structures for bulk THCA flower are designed to accommodate different budgets. For
example, basic packages for quantities of 10 pounds range from $900 to $1,600 per pound,
while larger orders of 21 pounds or more can benefit from custom pricing. These flexible pricing
options ensure that consumers can find products that meet their therapeutic or recreational
needs while staying within their budget.

Buying in bulk also presents significant savings. Retailers like Discount Pharms offer substantial
discounts for large quantity orders, making it a cost-effective strategy for those looking to build
a personal stash or for retailers aiming to increase their profit margins. This approach benefits a
wide range of consumers, from casual users to dedicated suppliers.

When choosing the right THCA flower in bulk, it is essential to prioritize quality and potency.
Products should be cultivated by skilled experts and undergo rigorous lab testing to ensure
purity and effectiveness. Reputable retailers typically offer 100% organic, hand-trimmed, and
Farm Bill compliant THCA flowers, providing a satisfactory purchase experience.

Verifying the retailers reputation is a crucial step in ensuring a legal and safe purchase. Trusted
retailers provide detailed company information and demonstrate their commitment to quality
through lab testing and compliance with legal standards. For example, Zaza Distro is known for
its high-quality assurance and exceptional customer support.


Ensuring that the purchase is legal involves verifying age and adhering to Farm Bill regulations.
Consumers should seek retailers who provide certificates of analysis for their products,
demonstrating compliance with the requirement of less than 0.3% Delta 9 THC by dry weight.
This verification process ensures that buyers are obtaining high-quality goods within the
bounds of the law.

Buying THCA flower in bulk is a legal, convenient, and cost-effective option for Texas
consumers. With a wide variety of strains available, flexible pricing, and robust customer
support, bulk purchasing meets the needs of both therapeutic and recreational users. By
prioritizing quality, potency, and legality, consumers can confidently make informed decisions
and enjoy the benefits of high-quality THCA flower.

wyatt purp advertisement

THCa Continues to Make Waves in The Texas Cannabis Landscape

THCa, which stands for tetrahydrocannabinoilic acid, is a non-psychoactive cannabinoid that is the precursor to the well-known psychoactive cannabinoid, THC. Through a process called decarboxylation, THCa converts to THC. 

According to Wyatt Larew, founder of the Dallas-based cannabis brand Wyatt Purp, decarboxylation happens when the plant is exposed to light, heat and death. 

“The scientific definition of THCa is conventional cannabis that has not converted into THC yet,” he said. 

When live plants are tested, Larew said the THC content will be higher in the same plant four to six weeks post-harvest.

“That’s because decomposition is decarboxylation,” he said. 

According to Larew, the U.S. Drug Enforcement Agency deems THCa flower legally compliant hemp flower because testing takes place before decarboxylation occurs. 

“All THCa flower is federally legal cannabis. There’s no difference in it other than the time of the testing,” Larew said. “The U.S. Department of Agriculture doesn’t regulate finished goods, and everything is done with a full chain of custody from the farm to the package. The testing was done while it was like that.”

By this logic, Larew says all cannabis is technically federally legal.

“This has been legal since 2018, which means that every single cannabis arrest since 2018 is based off of constitutional fraud,” he said.

According to Larew, it gets dicey when Texas’ state crime labs test products that were purchased as legal THCa because they could have since decarboxylated through the natural decomposition process. He also said a common testing method called gas chromatography uses heat, which also causes decarboxylation. 

In a Feb. 14, 2023, letter regarding the legal status of THCa in smokable hemp, Rod Kight of Kight Law Group LLP acknowledges that there are dozens of forms of the THC molecule, including THCa, but only delta-9 THC is used to determine whether harvested hemp and hemp products are lawful under federal law. 

“The quantity and concentration of other THC isomers, and other cannabinoids and forms of THC, including THCa, are totally irrelevant with respect to the legal status of harvested hemp and hemp products,” the letter states. 

Unlocking THCa’s Health Benefits

While THCa does not offer psychoactive effects, it has been shown to offer some health benefits. According to Cresco Labs, one of the largest publicly traded, vertically integrated multistate cannabis companies in the U.S., THCa is beneficial for relieving inflammation and pain and is an ideal cannabinoid for relieving the symptoms of arthritis and seizures. It’s also an effective neuroprotectant, they say, making it beneficial for the treatment of multiple sclerosis, Alzheimer’s and Parkinson’s disease. 

Because of decarboxylation, however, users must consume the plant in a certain way to reap the health benefits of THCa. When smoking cannabis, the heat converts THCa into THC, so it’s best to grind fresh flower into something edible.

Arbors Wellness, a Michigan-based medical marijuana provisioning center, recommends sourcing a freshly made THCa extract or adding ground bud into a smoothie along with other superfoods like kale or avocado. 

“Some people even juice fresh palm leaves and sugar leaves right after harvest, but make sure your grower isn’t using chemical pesticides if you’re planning this,” the Arbors Wellness blog states. 

Building an Empire with THCa

Wyatt Purp has become a major player in the THCa landscape, and Larew said the company has experienced a 10,000% annual year-over-year growth rate since 2021. Up to this point, Larew has shipped his THCa flower to customers nationwide through his e-commerce store. However, he said a Wyatt Purp retail store is coming in the next couple of months. 

“We don’t have a location decided yet, but I’m just getting my ducks in a row and waiting to pull the trigger,” he said. 

Larew said his stores will not offer the typical smoke shop experience but will operate more like cannabis dispensaries in legal states. The locations will not sell nicotine products, and patrons will first check-in in a waiting room before going to the back to select natural THCa flower from the menu. 

Larew said he plans to open multiple Wyatt Purp stores, with the flagship brick-and-mortar location planned for Dallas.