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The controversy surrounding Massachusetts cannabis testing practices and labs has spilled over into the courts, as Framingham-based MCR Labs has filed a lawsuit against nine in-state competitors, saying their alleged manipulation of testing results is causing harm to both consumers and MCR’s business.
The lawsuit cites WBJ’s investigation into dysfunction at the state agency Cannabis Control Commission, referencing the fact Julie Johnson, the agency’s chief of research, said that when she was eventually able to obtain testing data from the agency, it showed a large amount of samples fell just below the state’s threshold for contaminants, something she said was a near statistical impossibility.
The 50-page lawsuit, filed in Suffolk County Superior Court on Thursday, claims the actions of the labs has violated state law, intentionally interfered with MCR’s business relations, and led to unjust enrichment.
“Despite the regulatory requirements, the rigors of accepted and accredited testing procedures, and the fact that the true THC potency and presence of contaminants are determinable with accuracy using validated testing methods, Defendant Labs have demonstrated their willingness to provide more favorable results — regardless of their empirical fallaciousness — in order to tempt customers away from other labs, namely Plaintiff,” the lawsuit reads.
Citing data MCR obtained through records requests, the firm notes what it says are clear examples of fraud.
MCR alleges some of the defendants participated in round robins, which it says is when a cannabis cultivator or product manufacturer sends samples from the same product to multiple labs at once. MCR claims this is done in order to see which one provides the most favorable result, encouraging firms to inflate potency numbers and find ways to pass samples that would otherwise fail containment testing.
The lawsuit names eight cannabis testing labs as defendants:
When contacted by WBJ by email, Green Valley Analytics declined to comment on the lawsuit. Niki Jones, CEO of Niki Jones Agency, said on behalf of Green Analytics that the company had not received the lawsuit and could not comment. The six other firms did not immediately respond to requests for comment.
MCR executives have long lamented the state of cannabis testing regulations and enforcement in Massachusetts, telling lawmakers in July 2023 that fraud and abuse were rampant in the space, according to State House News Service.
In October, an investigation from the Wall Street Journal found from April 2021 through 2023, labs in Massachusetts that failed fewer tests than other labs in the previous year tested a median of 84% more samples during the following 12 months, suggesting growers were seeking out labs likely to approve products.
An audit conducted in September 2023 by Massachusetts State Auditor Diana DiZoglio found Cannabis Control Commission had allowed more than $10 million in marijuana products whose testing approvals had expired to be sold to consumers.
CCC sought to tighten its testing requirements in December, issuing an administrative order which attempted to clarify existing testing protocols by telling cannabis businesses they may only submit one test sample package to a single testing lab for all compliance-related testing, according to an agency press release. This move sought to end the practice of lab shopping, where cultivators and manufacturers seek out labs with high potency results and low failure rates.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
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Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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