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.