Zinger Key Points
- California-based Shield Management has allegedly “lab shopped” to camouflage that it has sold tainted products.
- Shield allegedly sold the products labeled as not containing pesticides or metals, which was not the case, the lawsuit said.
- Get New Picks of the Market's Top Stocks
California-based Shield Management has allegedly "lab shopped" to camouflage that it has sold tainted products.
As reported by Green Market Report's Debra Borchardt, 23 of Shield’s products failed tests, then the company found a lab that turned "a blind eye to pesticide contaminants so that failed products can continue to be sold."
Kayla Esmond, the plaintiff in the lawsuit filed earlier this month in the Superior Court in California, claimed it independently tested the products from the West Coast Cure and Phire and found they contain the contaminants.
Shield allegedly sold the products labeled as free of pesticides or metals, which was not the case, according to Esmond's complaint. In addition, Shield is also being accused of doctoring the Certificates of Analysis to look as though the products passed the required testing.
The lawsuit noted that Shield’s dishonesty is not an isolated case.
"This systemic fraud is not an isolated phenomenon but rather is becoming a pervasive issue across the marketplace, affecting numerous stakeholders, including consumers, legitimate businesses, and the integrity of the industry as a whole," according to the lawsuit.
At the moment, there are roughly 50 labs in California licensed by the Department of Cannabis Control (DCC) for testing cannabis products. Due to the decline in the state's legal market, competition is fierce, resulting in cases such as Shield's.
In such a scenario, "brands and laboratories agree, jointly, to ignore ‘safety fails’ to hide the presence of dangerous chemicals that otherwise would prevent the sale of these tainted goods," Borchardt wrote citing, the complaint.
Earlier this week, the DCC issued a recall of certain THC oil vape cartridges being sold in 106 retail locations across the state, due to containing dangerous levels of a dangerous pesticide. That move was prompted by a joint investigation by The Los Angeles Times and cannabis industry newsletter WeedWeek.
Related news: Cannabis Recall In California After Investigation Finds Dangerous Pesticides In Popular Weed Products
The recalled products are West Coast Cure's "Orange Cookies" products packaged on or after September 26, 2023. The recall of a single CUREpen PREMIUM THC OIL Vape Cartridge was issued after determining the presence of a pesticide called chlorfenapyr.
As the cannabis industry continues to face these ongoing challenges, the leaders in the space will gather at the 19th Benzinga Cannabis Capital Conference in Chicago on Oct. 8-9. This event will bring together executives, investors, and policymakers to discuss solutions for improving product safety and regulatory measures within the cannabis industry. Get your tickets now before prices surge by following this link.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.