Missouri AG: Green Dragon Kratom 7-OH Sales Suspension

• Missouri Attorney General Catherine Hanaway secured an agreement with The Green Dragon, LLC to halt all sales and distribution of 7-OH and other kratom products in Missouri.
• The agreement prohibits the company and its owners from any financial interest in Missouri businesses selling these substances and requires scientific analysis for future dietary supplements.
• This action is part of a broader enforcement effort by the AG's office against "gas-station opioids," following similar agreements with other distributors.
• The enforcement proceeds independently of the DEA's pending intent to classify 7-OH and related substances as Schedule I controlled drugs.
• The Assurance of Voluntary Compliance formally concludes the AG's investigation into The Green Dragon, LLC, without any admission of liability.

Attorney General Hanaway has made it clear that Missouri's consumer protection laws will continue to be vigorously enforced.

Missouri Attorney General Catherine Hanaway recently announced a significant agreement with The Green Dragon, LLC, a St. Louis-area distributor, and its owners, David Jadwin and Matthew Jadwin. This accord mandates that the company and its principals will no longer own, operate, or hold any financial stake in businesses within Missouri that market, advertise, or sell 7-OH or any other kratom product to consumers or distributors in the state. The agreement specifically targets the cessation of all sales, distribution, marketing, and advertising of these products, requiring their removal from all Missouri retail premises.

Beyond the immediate cessation of kratom and 7-OH sales, the agreement imposes a forward-looking requirement on The Green Dragon. The company has committed to obtaining a thorough scientific analysis of the active ingredients in any dietary supplement it intends to sell in the future. This measure aims to safeguard consumers from unknowingly being exposed to potentially dangerous substances, such as 7-OH. Attorney General Hanaway characterized these substances as "unregulated, highly addictive drugs" that have "taken lives and fueled addiction across our state," labeling them "gas-station opioids" and vowing continued action against distributors who endanger Missourians.

This enforcement action by the Missouri Attorney General's office unfolds amidst a dynamic federal regulatory environment concerning kratom alkaloids. The United States Drug Enforcement Administration (DEA) had previously issued a notice on July 1, signaling its intent to classify 7-OH, MGM–15, MGM-16, and mitragynine pseudoindoxyl as Schedule I controlled substances. The public comment period for this proposed scheduling concluded on August 1, paving the way for the U.S. Attorney General to potentially finalize this classification, which would impose federal criminal penalties for their possession and distribution.

Despite the pending federal decision, Attorney General Hanaway has made it clear that Missouri's consumer protection laws will continue to be vigorously enforced. She lauded federal officials for recognizing these substances as "synthetic, addictive opioids that carry grave risks" but emphasized that her office would not wait for federal scheduling to act. The state's consumer protection statutes prohibit the sale of 7-OH, MGM-15, MGM-16, and pseudoindoxyl, allowing the Attorney General to pursue enforcement actions independently, as demonstrated by this recent agreement and a series of similar actions against other leading distributors and retailers of kratom alkaloids, including CBD American Shaman, Relax Relief Rejuvenate Trading LLC (EDP Kratom), and Big Dreams Ventures, LLC (VEGA 7X).

The agreement with The Green Dragon, LLC, formalized as an Assurance of Voluntary Compliance filed in the Circuit Court of Cole County, marks the conclusion of the Attorney General's investigation into the company. Consistent with previous negotiated resolutions in similar cases, this agreement does not include any admission of liability by The Green Dragon, nor has any court made a determination of liability against any individual or entity involved. This approach allows for swift resolution and immediate cessation of sales without protracted litigation.

Attorney General Hanaway reiterated her office's commitment to aggressively addressing deceptive, dangerous, and illegal activities that jeopardize consumer well-being throughout Missouri. The ongoing enforcement efforts underscore a proactive stance against substances perceived as harmful, irrespective of their current federal classification. Missouri residents who believe they have suffered harm from 7-OH or other kratom alkaloids are encouraged to contact the Attorney General’s Consumer Protection hotline at 800-392-8222 or submit an online complaint, reinforcing the state's dedication to protecting its citizens from unregulated products.

This development signals the Missouri Attorney General's aggressive enforcement stance against kratom and 7-OH sales, irrespective of pending federal DEA scheduling. Lawyers and compliance officers in Missouri should advise clients distributing dietary supplements to proactively review product ingredients for similar substances and ensure robust scientific analysis to avoid potential enforcement actions under state consumer protection laws.

Source: Original reporting via Attorney General's Office release