Anresco Laboratories and Infinite Chemical Analysis Labs have withdrawn their lawsuit against 13 competitors they allege manipulated marijuana testing results to win customers and business, MJBizDaily has learned.
According to court documents, the two California-based labs filed a dismissal without prejudice on Aug. 3 in U.S. District Court for the Central District of California.
Josh Swider, co-founder and CEO of San Diego-headquartered Infinite Chemical Analysis Labs, told MJBizDaily he plans to file a new lawsuit against the defendants.
“We stand by the allegations and merits in the complaint filed in federal court,” he said via email.
“However, with further analysis, and as each of the defendants is aware, we anticipate filing a new complaint very soon.
“We look forward to providing further comment upon the filing of this new complaint.”
Extensive marijuana product recalls
Swider has gained widespread recognition in recent months, since his lab has been at the forefront of a pesticide scandal that has rocked the regulated cannabis industry.
Infinite Chemical Analysis and Anresco were among the labs to cite the presence of illegal pesticides in numerous cannabis products for sale in California’s regulated marijuana market and publicize those findings.
His complaints to regulators at California’s Department of Cannabis Control (DCC) and Gov. Gavin Newsom led to an investigation by WeedWeek and the Los Angeles Times that chronicled numerous contamination issues within the state’s marijuana supply chain.
Since that June report, the DCC has issued several product recalls citing illegal pesticides.
Most of the recalls have cited the presence of chlorfenapyr, a banned greenhouse pesticide typically sprayed directly on leaves to combat caterpillars, fungus gnats, mites and other pests.
The mounting crisis has pitted labs, retailers, brands and regulators against each other while eroding confidence in the world’s largest regulated marijuana market.
In their joint lawsuit filed June 24, Anresco Laboratories and Infinite Chemical Analysis Labs claimed the 13 independent testing labs inflated potency or disregarded the presence of certain contaminants in certificates of analysis (COAs), jeopardizing the health of consumers.
Defendant stands by results
Myron Ronay, CEO of Long Beach-based BelCosta Labs – one of the 13 defendants – took issue with Anresco and Infinite labs’ methodology.
“They didn’t test the same products we tested; I stand by all our results,” Ronay told MJBizDaily in a phone interview.
Ronay also criticized the role the plaintiffs are taking on, considering all the labs are competitors.
“Ultimately, they’re not the arbitrators of the California cannabis industry,” he said.
“The DCC is – and they’re actually doing investigations – pulling products off the shelves and testing product.
“They’re trying to file frivolous complaints against us to hurt us financially.”
‘There’s no evidence’
Spencer Wong, CEO of Pasadena-headquartered Encore Labs – another defendant – questioned the motives and merits behind the lawsuit.
“Is it just a publicity thing for them?” Wong said in a phone interview with MJBizDaily.
“A lot of the stuff in the suit is based off their own testing results, not the DCC.
“The DCC didn’t come out and say there’s gaps in the testing.”
Wong said Encore Labs is prepared to continue the legal battle in state court, where the case likely will be refiled.
“They’re just allegations at this point,” Wong said.
“There’s no evidence.”
Chris Casacchia can be reached at chris.casacchia@mjbizdaily.com.
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