Michigan’s Cannabis Regulatory Agency has reached a settlement with Viridis, a cannabis testing lab, after a years-long dispute. As a result, the state is revoking the lab’s licenses and permanently banning its three majority owners from participating in the industry.
The dispute began in 2021 when the agency discovered inaccurate and unreliable results from Viridis, which was testing a significant portion of the state’s cannabis products. The agency issued a massive recall of products tested by Viridis, which led to a lawsuit and a court decision to limit the recall.
The agency argued that Viridis had engaged in a “sustained, deliberate pattern of noncompliance” that undermined confidence in the state’s regulated cannabis system. The lab’s owners were accused of inflating THC levels and failing to follow testing protocols.
Under the settlement, Viridis’ licenses will be revoked, and the lab’s three majority owners will be permanently excluded from the industry. Minority investors in the lab are reorganizing and forming a new entity to operate the lab in Bay City.
The Michigan Cannabis Regulatory Agency’s executive director, Brian Hanna, hailed the settlement as a victory for the state’s cannabis industry. “This is justice, plain and simple,” he said. “Viridis failed to uphold the standards required of marijuana safety compliance facilities in Michigan. They will never operate in this space again, and the Michigan cannabis industry will be stronger for it.”
