A Michigan marijuana testing laboratory won half of its claim against state regulators over a Nov. 17 recall that the company said involved $229 million worth of flower and 403 retailers.
Michigan Court of Claims Judge Christopher Murray ruled that state marijuana regulators likely acted arbitrarily in ordering a recall against Viridis North in Bay City, the Detroit Free Press reported.
But in a 13-page decision, Murray denied Viridis Laboratories’ claim that the state also improperly recalled products at the company’s facility in Lansing.
The state’s Marijuana Regulatory Agency said it has complied with the court order to release an administrative hold on all products tested by Viridis North that were included in the recall.
“This includes any products that have been subsequently retested regardless of whether those retesting results were passing or failing,” the regulatory agency said in a statement.
In the decision regarding Viridis North, the judge said there was “persuasive evidence about the harm to plaintiffs, as well to neutral customers who are subjected to the recall’s impact.”
The judge wrote that Viridis North was a different situation from the other lab because no samples from Viridis North were included in a retesting that in part led to the recall.
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The decision came after a recent court hearing on the matter.
Viridis had filed a lawsuit against state regulators claiming the product recall against both labs was “unjustified, prejudiced and retaliatory.”
The recall was prompted by concerns that Viridis’ methods were inaccurate or unreliable, Michigan regulators previously said.
The lawsuit alleged that state regulators questioned the company’s testing because the agency was using the lab’s competitors to check Viridis’ results.
– Jeff Smith