Curaleaf Labeling Mix-Up Epilogue: Here's How The Cannabis Giant Is Quietly Settling Lawsuits

It's been over a year since Curaleaf Holdings, Inc. CURA CURLF made headlines for mixing up the labels of two very different products - one that contained CBD and the other THC. Now the cannabis giant will pay $100,000 to settle another of several class-action lawsuits that resulted from the giant mislabeling mess, reported The Oregonian.

The latest settlement comes after 10 previously settled lawsuits from customers who were not expecting to get stoned from their CBD drops, as well as a $130,000 fine Curaleaf agreed to pay and a 23-day suspension imposed by Oregon marijuana regulators in August.

As a result of the legal action, filed Thursday with the U.S. District Court in Portland, the company will pay between $150 and $200 to each of the several hundred consumers who purchased CBD wellness drops in Oregon over the past year.

Michael Fuller, the Portland attorney who represented the affected customers, including a 77-year-old man who filed a federal lawsuit in June, said he intends to seek a quarter of the settlement fund as compensation for representing the plaintiffs. In addition, the unclaimed funds would go to Oregon Consumer Justice, a non-profit organization.

“The average cost of the product at issue was about $25, so consumers will get back 6 to 8 times their purchase price through our settlement,” Fuller said.

What Happened: The CBD/THC Debacle

Select, the Oregon cannabis brand owned by Curaleaf, committed the mislabeling 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 unexpected and confusing states for some consumers.

Oregon regulators recalled the brand’s 1,000mg unflavored Select CBD drops that were labeled as “Broad Spectrum” that, in fact, contained THC. The brand’s 1,000-mg bottles of unflavored, Select THC Tincture were recalled for not containing THC.

Meanwhile, Curaleaf settled a wrongful death case related to the labeling accident last week, while two other personal injury cases are pending.

CURLF Price Action

Curaleaf’s shares traded 2.52% higher at $5.69 per share at the market close on Friday afternoon.

Photo: Courtesy of succo, mrkukuruznik5 by Pixabay