Cannabis company Curaleaf Holdings, Inc. (CSE:CURA) (OTCQX:CURLF) is facing a lawsuit for allegedly engaging in unlawful trade practices, gross negligence, and “utter lack of reasonable and adequate safety and protocols when it manufactured, bottled, labeled, shipped, and sold its tainted products. …”
The federal lawsuit was filed on Monday in the U.S. District Court in Portland, Oregon by a 77-year-old man, reported Oregon Live.
The 13-page document is asking for class-action status and $200 apiece for the several hundred consumers who purchased CBD wellness drops in Oregon over the past year. The products in question contained high doses of a psychoactive ingredient.
CBD/THC Debacle
Select, the Oregon cannabis brand owned by Curaleaf committed a substantial mistake with possible serious health implications last year.
The cannabis producer also known as Cura Cannabis, mixed up its two lines of products - one with CBD and the other with THC, causing confusing states for some of its consumers who were not expecting to get stoned from their CBD drops.
Oregon regulators recalled the brand’s 1,000mg unflavored Select CBD drops that were labeled as “Broad Spectrum,” but in fact contained THC. The brand’s 1,000-mg bottles of unflavored, Select THC Tincture were recalled for not containing THC.
The Oregon Liquor and Cannabis Commission confirmed earlier that it had revealed why people were getting high after using CBD products made of hemp and that the oversight occurred at the company’s production site in Portland.
“After our preliminary investigation, we believe this mistake occurred due to unintentional human error,” Curaleaf announced back then, adding that it will work on improving its quality controls and beef up the training of its production workers.
In addition to the recall, Oregon regulators proposed a 70-day suspension and a $200,000 fine for Curaleaf.
So far, 10 lawsuits brought by Michael Fuller, the Portland attorney who represented the affected customers, have been settled by the Massachusetts-based company.
Now, as part of separate litigation, Fuller is seeking compensation for everyone who bought the mislabeled CBD products.
Photo: Courtesy of Scott Graham on Unsplash
