Michigan Testing Lab Sues State's Regulators Over $229M Cannabis Recall, Affecting Over Half The State

Michigan Testing Lab Sues State's Regulators Over $229M Cannabis Recall, Affecting Over Half The State

Just days after Michigan regulators issued a recall of marijuana products,  impacting nearly 70% of the state's on-shelf cannabis products sold at more than 400 stores, the marijuana testing facility at the center of the debacle filed a lawsuit against the Marijuana Regulatory Agency (MRA).

Last week, the MRA reported having detected "inaccurate and/or unreliable results" of all products - excluding inhalable concentrate products, such as live resin, distillate or vape carts - tested by Viridis Laboratories between Aug. 10 and Nov. 16, reported local news outlets.

According to the lawsuit, the recall resulted in an estimated $229 million disruption in the industry, CBS News writes.

"The recall is the latest and most egregious action by the MRA in a prolonged campaign of harassment aimed at Viridis," Viridis Laboratories' attorney David Russell said Tuesday. "Unfortunately, this latest effort by the MRA has caused huge disruption and chaos in the industry, harming small businesses and besmirching Viridis' reputation with no basis in science."

The more than 200-page complaint filed Monday in the Michigan Court of Claims argues that the MRA illegally shut down Viridis' facilities and issued the recall despite experts stating that it was unwarranted to do so. The court was asked to "provide relief to Viridis and bring accountability and oversight to an agency that has far exceeded its authority."

At the time of the recall, Viridis Laboratories had said that it was "fully cooperating" with the MRA.

"While we strongly disagree with this decision and firmly stand by our test results, we are fully cooperating with the MRA and working closely with our customers to minimize interruptions and retest affected products at no cost," Greg Michaud, Viridis Laboratories' CEO, told CBS News in a statement.


Photo: Courtesy of Chokniti Khongchum from Pexels


Posted In: CBS NewsDavid RussellGregViridis LaboratoriesCannabisNewsPoliticsMarketsGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.