Lil Baby’s company is suing Bay Smokes for selling contaminated WHAM cannabis products containing illegal THC levels and E. coli.
Lil Baby just took his business partners to court over some seriously contaminated cannabis products that never should have been on the market.
The Holding Co. filed a lawsuit against Bay Smokes on Monday, April 6, alleging that the WHAM brand products it sells contain more than 22 percent THC, well above the 0.3 percent federal limit.
The joint venture was formed in 2024 with the understanding that Bay Smokes will only distribute low-THC, federally legal cannabis that can be shipped nationwide.
Testing showed that not only were these products too potent, but they were also contaminated with E. coli, yeast and mold, which is absolutely unacceptable for any product that consumers should be using.
Bay Smokes founders Will Goodall and Katiana Kay have completely failed when it comes to quality control and product safety standards.
The Holding Co. owns the WHAM trademark, Lil Baby’s nickname and the title of his 2025 chart-topping album, so the brand holds significant personal and financial sway for him.
The holding company sent a cease-and-desist letter in February, but Bay Smokes ignored it and continued to market the tainted product.
The lawsuit accuses Bay Smokes of unauthorized use of pornographic marketing videos to promote the WHAM brand, alleged trademark infringement, trademark dilution and false advertising. Lil Baby has been building a business empire outside of music, and this legal action shows he’s not playing around when it comes to protecting his brand investment and reputation.
The company is seeking unspecified damages for trademark infringement and damage to the reputation of the WHAM brand in the market.
This situation is serious because consumers could be seriously harmed by products contaminated with dangerous microorganisms and illegal THC content.
Billboard reported on the details of the lawsuit, highlighting how the cannabis industry’s regulatory challenges continue to cause problems for legitimate businesses trying to function normally.
The Holding Co. said Bay Smokes created a harmful association with the rapper’s brand by falsely claiming in its ads that it owned Lil Baby’s trademark.

