The Koi CBD Lawsuit, Explained
If you search for Koi CBD, the word “lawsuit” follows it around. Most of what is written about it is either alarmist or evasive. Here is the actual record: two lawsuits, two FDA warning letters, and what each one did and did not establish.
The headline class action against Koi was voluntarily dismissed by the plaintiffs on 10 February 2020, without prejudice, ten weeks after it was filed. No class was certified. Nothing was adjudicated. There was no settlement and no finding against Koi.
The substantive regulatory record is two FDA warning letters, in 2019 and 2023.
Timeline
| Date | Event | Outcome |
|---|---|---|
| 8 April 2019 | Thurston & Hass v. Koi CBD LLC filed in Los Angeles Superior Court over Koi CBD Vape Juice and a failed workplace drug test | State court action; no public finding against Koi |
| 22 November 2019 | FDA warning letter to Koi CBD LLC naming eight products over therapeutic claims | Warning letter; Koi required to respond within 15 working days |
| 5 December 2019 | Fausett & Good v. Koi CBD LLC, a putative class action, filed in the Central District of California | — |
| 7 February 2020 | Koi files a motion to dismiss | Hearing set for 9 March 2020 |
| 10 February 2020 | Plaintiffs voluntarily dismiss the class action, without prejudice | Case terminated. No class certified, no settlement, no ruling on the merits |
| 18 July 2023 | Second FDA warning letter, this one about delta-8 THC gummies as an unapproved food additive | Warning letter; response required |
The 2019 drug test case
On 8 April 2019, Bianca Thurston and Coni Hass sued Koi CBD LLC in the Superior Court of Los Angeles County. The product at the centre of it was Koi CBD Vape Juice, marketed as containing 0% THC.
According to the complaint, Thurston bought three bottles at $79.50 each between April and June 2018 specifically because she believed a 0% THC product would not cause a failed drug test. In June 2018 she tested positive for cannabinoids at work and was terminated from her job.
The complaint also alleged that Koi had made unapproved disease-treatment claims — arthritis, chronic pain, depression, PTSD, heart disease and cancer were cited — used testimonials to the same effect, and labelled an inhalable product as a dietary supplement, which FDA guidance does not permit. The plaintiffs sought compensatory and punitive damages and an injunction on labelling.
This case matters less for its outcome than for what it exposed: the gap between “0% THC” as a marketing phrase and non-detect as a laboratory result. If you are drug tested, read does hemp THC show up on a drug test before buying any hemp product from any brand.
FDA warning letter, 22 November 2019
Koi was one of fifteen CBD companies the FDA wrote to in November 2019. The letter to Koi named eight products: CBD Healing Balm, CBD Vape Oil, Full Spectrum CBD Tincture, Koi Lotion, Koi CBD Gummies, Koi CBD Infused Shot in three varieties, Koi Naturals CBD Spray for Pets, and Koi CBD Soft Chews.
The objection was to marketing claims, not to contamination or potency. The FDA quoted Koi’s own copy back at it — lines asserting that CBD relieves pain and inflammation, lowers the incidence of diabetes, and treats opioid addiction, along with references to anti-tumour effects, PTSD, fibromyalgia, schizophrenia, MS and Crohn’s disease.
The agency alleged five categories of violation: marketing unapproved new drugs; misbranding, because the products lacked adequate directions for lay use; an unlawful food additive in the gummies; unapproved new animal drugs in the pet line; and misclassification as dietary supplements.
Worth being precise about what a warning letter is. It is an enforcement notice about how a product is marketed, not a product recall and not a finding that anything in the bottle was wrong. It is also not nothing: it is the FDA formally telling a company it is breaking the law.
The class action — and how it ended
On 5 December 2019, two weeks after the FDA letter, Calley Fausett and Leigh Good filed a putative class action against Koi CBD LLC in the U.S. District Court for the Central District of California, case number 2:19-cv-10318, before Judge George H. Wu.
The complaint tracked the FDA letter closely, alleging that Koi sold products for humans and animals in violation of federal law, that the therapeutic claims rendered them unapproved drugs, and that they could not lawfully be marketed as dietary supplements.
Koi moved to dismiss on 7 February 2020, with a hearing set for 9 March. Three days later, on 10 February 2020, the plaintiffs filed a notice of voluntary dismissal. The dismissal was without prejudice, and the case was terminated the same day.
What that means in plain terms: the plaintiffs walked away before the court ruled on anything. No class was ever certified, no facts were established, no damages were awarded, and there was no settlement. “Without prejudice” means they could in principle have refiled; they did not. Anyone describing this as a lawsuit Koi lost, or settled, is describing something that did not happen.
FDA warning letter, 18 July 2023
A second, narrower letter. The FDA cited Koi’s Delta 8 Gummies as adulterated under section 402(a)(2)(C)(i) of the Food, Drug and Cosmetic Act, on the basis that delta-8 THC is an unapproved food additive with no established basis for being generally recognised as safe in conventional food. The agency raised the psychoactivity of the products, the absence of safety evaluation, and the risk of accidental consumption by children.
This letter was part of a wider FDA action against delta-8 edibles and was not specific to Koi’s manufacturing. It reflects an unresolved regulatory position on hemp-derived intoxicants that affects most of the category — our federal hemp THC deadline tracker follows where that is heading.
What this means if you are deciding whether to buy
Reasons not to be alarmed
- The class action ended in a voluntary dismissal with no finding against Koi
- Neither FDA letter alleged contamination, mislabelled potency, or unsafe manufacturing
- The disease claims the FDA objected to in 2019 are gone from Koi’s current product pages — we checked the full catalogue in August 2026
- Koi has operated continuously since 2015 and still batch-tests through an accredited third-party lab
Reasons to stay careful
- Two FDA warning letters four years apart is a pattern, not a one-off
- The 2019 case turned on a real person losing a real job over a real positive test
- Koi’s full-spectrum and delta-9 products contain enough THC to trigger a workplace test
- The delta-8 regulatory question is still open across the whole category
Our overall assessment of the brand, including lab practice and value, is in the Koi CBD review. If you want a general framework for judging any hemp company, we wrote how to vet a hemp brand and a guide to reading a COA.
FAQ
Did Koi CBD lose a lawsuit?
No. The putative class action filed against Koi in December 2019 was voluntarily dismissed by the plaintiffs on 10 February 2020, without prejudice and before any ruling. No class was certified, no damages were awarded and there was no settlement.
Was there a Koi CBD class action settlement?
No. There was no settlement. The plaintiffs dismissed the case themselves three days after Koi moved to dismiss it.
Why did the FDA send Koi a warning letter?
Twice. In November 2019 over therapeutic disease claims across eight products, and in July 2023 over delta-8 THC gummies as an unapproved food additive. Neither letter alleged contamination or inaccurate potency.
Is Koi CBD safe to buy?
Koi third-party tests every batch through an accredited lab and publishes batch-specific certificates behind a QR code on each label, which is the correct practice. The regulatory history is about marketing claims and the delta-8 category, not about what is in the products. As with any hemp brand, check the COA for the batch you receive.
Can Koi CBD make you fail a drug test?
Yes, particularly the full-spectrum, delta-9 and THCA products. That is what the 2019 Los Angeles case was about. The broad-spectrum PRIZM line is listed at 0.001% THC and is lower risk, but no hemp product can be guaranteed safe on a drug test.
Keep Reading
What Happened to Koi Vape Juice
The product at the centre of the 2019 case, and where it went.
Sources: Thurston & Hass v. Koi CBD LLC, Superior Court of Los Angeles County, filed 8 April 2019; Fausett & Good v. Koi CBD LLC, No. 2:19-cv-10318 (C.D. Cal.), filed 5 December 2019, voluntarily dismissed without prejudice 10 February 2020; FDA warning letter to Koi CBD LLC, MARCS-CMS 593391, 22 November 2019; FDA warning letter to Koi CBD LLC, 651252, 18 July 2023. This article is journalism, not legal advice. MyCannabisReviews may earn a commission from qualifying purchases made through links on this site, at no extra cost to you. Content is for adults 21+.
