American Shaman Lawsuit: Missouri Suit, Settlement, and 7-OH Seizures

The biggest American Shaman lawsuit, Missouri Attorney General Catherine Hanaway’s March 2026 suit against the Kansas City-based CBD and kratom retailer, ended three months later in a settlement that bars the company from selling kratom and 7-hydroxymitragynine (7-OH) products anywhere in Missouri, with a $5 million penalty hanging over any breach. The case is one of several legal and regulatory actions the company and its founder, Stephen Vincent Sanders II, have faced in recent years.

What Missouri Alleged

On March 31, 2026, Hanaway filed suit in Jackson County Circuit Court against CBD American Shaman, Shaman Botanicals LLC, Sanders, and several affiliated companies, with the state’s Department of Health and Senior Services joining as a co-plaintiff. The petition described a business that manufactured and sold kratom and its concentrated alkaloid 7-OH on an “industrial scale” while marketing the products as safe, natural alternatives to opioids.¹

The state alleged that the company offered free samples of 7-OH “for the purpose of addicting potential customers,” echoing the familiar line that “the first hit is free.”² Labels, according to the petition, described reports of addiction as merely “anecdotal” and marketed the products as offering “predictability and safety” or being “like happy hour, but without the hangover,” while omitting any mention of overdose risk. Some products, the state said, contained psychoactive alkaloid concentrations significantly higher than what the packaging stated.³

The lawsuit rested on three legal theories: that the company’s advertising and sales practices violated the Missouri Merchandising Practices Act; that kratom and its alkaloids qualify as controlled substance analogues under Missouri’s Comprehensive Drug Control Act; and that American Shaman’s four Kansas City warehouses were a “drug den public nuisance” that should be shut down.⁴

The Deaths and Health Evidence Behind the Case

Hanaway said the products “have resulted in the deaths of Missouri residents,” and the state submitted health data linking synthetic 7-OH to at least 197 deaths in Missouri. The record also included a sworn statement from a woman whose brother died from a kratom overdose and a statement from an undercover Missouri Highway Patrol officer who said 7-OH was being used to cut fentanyl.⁵

The Attorney General cited an FDA report describing 7-OH as producing “respiratory depression with more than 3-fold greater potency than morphine.” Missouri’s Chief Medical Officer Heidi Miller said authorities had seen “serious health consequences linked to its use, including dependency, dangerous interactions with other substances and life-threatening toxicity.” Nationally, the CDC reported that hospitalizations from kratom exposure had increased 1,200 percent between 2015 and 2025.¹

Why the Judge Did Not Halt Sales Right Away

After filing suit, Hanaway asked for a temporary restraining order to stop sales immediately. On May 8, 2026, Jackson County Circuit Judge Charles McKenzie denied the motion, ruling that the court could not determine whether the state was likely to succeed on the merits because both sides had submitted “competing affidavits” from qualified experts. He wanted to hear live testimony first.⁶

American Shaman’s defense had submitted statements from five toxicology and addiction experts arguing there was insufficient evidence of a public health crisis. One expert said she had never heard of 7-OH being used to cut fentanyl. Sanders himself provided a statement pointing to “enormous” consumer demand for 7-OH products for pain management. The denial was issued without prejudice, so the state could renew its request with additional evidence.⁵

What the June 2026 Settlement Requires

Less than a month after the TRO denial, the parties reached a deal. On June 4, 2026, the Attorney General’s office announced that Shaman Botanicals LLC, operating as American Shaman, had agreed to immediately suspend all in-state sales of kratom and its alkaloids to Missouri consumers, both in physical stores and online. The company also agreed to drop all Missouri-targeted retail advertising, including billboards, and to put internal controls in place within 30 days to prevent future retail sales in the state.⁷

If American Shaman breaches the agreement and fails to immediately remedy the violation, the Attorney General can invoke a $5 million penalty.⁸ The settlement is not an admission of liability, and no court found the defendants liable.⁷

A parallel agreement was reached with Relax Relief Rejuvenate Trading LLC, a Kansas City distribution company owned by Dustin Robinson with business partners Stephen Sanders III and Ajaykumar Patel. That company was also barred from selling 7-OH and related kratom alkaloids in Missouri under the same $5 million penalty.⁹

Federal Seizures and a Nationwide Recall

The state case ran alongside federal action against the same products. In November 2025, the FDA conducted unannounced inspections of American Shaman’s Kansas City-area warehouses and detained roughly 76,000 units of 7-OH products. On December 2, 2025, the U.S. Marshals Service, working with the FDA, seized about 73,000 units of 7-OH from three warehouses operated by Shaman Botanicals and Relax Relief Rejuvenate Trading. The seizure was carried out under a civil forfeiture complaint in the U.S. District Court for the Western District of Missouri, alleging the products were adulterated under the Federal Food, Drug, and Cosmetic Act. No criminal charges had been filed as of the seizure date, though the U.S. Attorney for the Western District of Missouri said the government would “pursue all possible civil and criminal remedies.”¹⁰

In February 2026, Shaman Botanicals issued a voluntary nationwide recall of its Advanced Alkaloids Chewable Tablets (White Vein, Lot B# AAW.501.3) after testing showed the product contained 7-OH in amounts exceeding the 7.5 mg per tablet declared on the label. The company acknowledged that the undeclared concentration could cause consumers to ingest a higher dose than intended.¹¹

Where 7-OH Stands Under Federal Law

On July 29, 2025, the FDA formally recommended that the Drug Enforcement Administration classify 7-OH as a Schedule I controlled substance. FDA Commissioner Marty Makary described 7-OH as an “opioid that can be more potent than morphine.” The FDA drew a line between concentrated 7-OH and natural kratom leaf products, saying its scheduling recommendation was “not focused on natural kratom leaf products.” The American Kratom Association supported the move, calling 7-OH products “chemically altered substances” distinct from botanical kratom.¹² As of mid-2026, the DEA was still reviewing the recommendation and had not issued a final scheduling decision.¹³

Earlier Lawsuits and Penalties

The 7-OH case was not American Shaman’s first legal trouble. The company and its affiliates have faced consumer suits and regulatory actions over several years.

Heavy Metals Class Action

In May 2020, Michael Davis of Broward County, Florida, filed a proposed class action in federal court alleging that American Shaman’s CBD products contained undisclosed heavy metals (copper, nickel, and lead) and that tinctures tested positive for yeast and mold at levels three times higher than allowable limits. The suit claimed the company falsely marketed its products as “all natural” and sought more than $5 million under the Magnuson-Moss Warranty Act and the Florida Deceptive and Unfair Trade Practices Act, among other claims. Davis voluntarily dismissed the case in August 2020.¹⁴

Deceptive Marketing Class Action

A separate class action, Korte et al v. CBD American Shaman, LLC, was filed in the U.S. District Court for the Western District of Missouri. The plaintiffs alleged that the company deceptively marketed 7-OH as safe while knowing it was highly addictive. The lead plaintiffs voluntarily dropped the suit, and the case was dismissed by December 2025.¹⁵

FDA Warning Letter

In November 2022, the FDA issued a warning letter to CBD American Shaman and Sanders identifying multiple violations. The agency said the company’s CBD-infused foods (suckers, cookies, sparkling beverages) were adulterated, its CBD sunscreen was an unapproved new drug, and its animal products (tinctures and chewables for dogs, cats, and horses) were unapproved new animal drugs. Testing of one cookie showed CBD levels nearly double the amount declared on the label.¹⁶

EPA Pesticide Fine

In December 2023, the EPA fined the company $120,720 for selling unregistered antimicrobial products called “Shaman Cleansing Wash” and “Shaman Cleansing Gel” in violation of the Federal Insecticide, Fungicide, and Rodenticide Act. The violations were found during inspections at an Overland Park, Kansas, retail location and the company’s Kansas City headquarters. As part of the settlement, the company agreed to donate $250,000 in medical supplies over five years to a Kansas City nonprofit.¹⁷

About the Company and Its Founder

CBD American Shaman was founded around 2015 by Vince Sanders (full name Stephen Vincent Sanders II) in Kansas City, Missouri. He opened one of the country’s first CBD retail stores in the city’s Crossroads district in 2016 and grew the business through a franchise model. By 2020, the company reportedly had about 500 franchise locations across more than 30 states. Franchisees were required to buy products exclusively from the company’s manufacturing arm, Shaman Botanicals.¹⁸¹⁹

Sanders has an earlier record in what one report called “legal gray zones.” Around 2000, he was sentenced to 32 months in federal prison for organizing and financing a marijuana trafficking scheme that prosecutors valued at $2.5 million; he served roughly half the sentence after cooperating with federal authorities. Before founding American Shaman, he ran a title loan business in the 1990s and a teeth-whitening operation that the Kansas Dental Board sued to shut down in 2011, alleging he was practicing dentistry without a license.¹⁸ Former associates and competitors have accused him of filing trademarks on the brand names of retailers and competitors who fell out with the company, which they described as an effort to force those businesses out.¹⁹

1
Missouri Attorney General. Attorney General Hanaway Files Suit Against American Shaman
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KCTV5. Missouri AG Sues American Shaman Over Kratom Sales, Deceptive Practices
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Missouri Attorney General. Petition for Injunction, Civil Penalties, and Other Relief
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Missouri Independent. Missouri Attorney General Sues American Shaman to Stop Sale of Kratom, 7-OH Products
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Missouri Independent. Kansas City-Based American Shaman Agrees to Stop Selling Kratom and 7-OH
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Springfield News-Leader. Missouri Judge Denies American Shaman Kratom Sales Ban
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Missouri Attorney General. American Shaman Agrees to Suspend Sales of Kratom and 7-OH in Missouri
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KSMU. Kansas City-Based American Shaman Agrees to Stop Selling Kratom and 7-OH
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Missouri Independent. Missouri Settlements Halt Sales of Concentrated Kratom Product 7-OH
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U.S. Department of Justice. Justice Department Seizes Unlawful 7-OH Products From Three Warehouses
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U.S. Food and Drug Administration. Shaman Botanicals LLC Issues Voluntary Nationwide Recall of Alkaloids Chewable Tablets White Vein
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Medscape. FDA Seeks Schedule I Status for Legal Morphine
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U.S. Food and Drug Administration. FDA Takes Steps to Restrict 7-OH Opioid Products Threatening American Consumers
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ClassAction.org. Class Action Claims All Natural CBD American Shaman Products Contain Multiple Heavy Metals
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Law360. Korte et al v. CBD American Shaman, LLC, et al.
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U.S. Food and Drug Administration. CBD American Shaman, LLC Warning Letter
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U.S. Environmental Protection Agency. EPA Fines Kansas City-Based CBD American Shaman LLC for Violating Federal Pesticide Law
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Kansas City Star. American Shaman Kansas City
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KCUR. The Man Behind Kansas City’s Fastest Growing CBD Chain