Proposed Class-Action Lawsuit Could Spell Trouble for Cannacompanies
Several significant cannabis companies in Canada have a multi-million dollar proposed class-action lawsuit on their hands after allegations of the potency of some of their products are “drastically different” than their labels claimed.
The claim was filed in Calgary on Tuesday, with its statement accusing the companies of inadequately labeling their products. This statement goes on to allege negligence on the companies’ part.
The plaintiffs are requesting a $500-million judgment, as well as punitive damages of $5 million from each defendant. These defendants include Tilray, Cronos, and Aurora Cannabis, along with several significant cannabis industry players and subsidiaries. Global News has not commented on these allegations just yet.
The plaintiff, Lisa Marie Langevin, claims she purchased a Tilray cannabis oil product in Calgary in February. However, she did not feel any of the intended effects over several tries. She reached out to Shaun Mesher, a friend holding a PhD in biochemistry. After sending the product to a lab to test its potency, they revealed that the cannabis oil only had 46 percent of the label’s claimed THC content. During a second product sample from the same lot, the product tested at 79 percent.
After this revelation, Mesher sent other cannabis product samples from several other companies for testing. The claim in the lawsuit refers to six samples that found product THC levels of varying strengths than the package’s labeling indicated.
Two of these products offered higher potency than advertised. However, the remaining products were lacking potency. These products’ THC content ranged from 54 percent to 119 percent of what was on the labels.
One of the product’s CBD content was also lacking at 52 percent of the label’s claim. Even with these deviations in potency, there has still not been a Health Canada recall, according to the statement of claim.