New York cannabis regulators are attempting to punish a commercial testing laboratory that abruptly closed amid an investigation into pesticide contamination and other alleged “serious failures.”
Lexachrom Labs, based on Long Island, shut down on June 1 and later surrendered its permit during a state audit that later led to one of the market’s biggest product recalls, as MJBizDaily reported.
On Wednesday, the state Office of Cannabis Management said it will seek to impose fines of “more than $2 million” and a ban of up to three years on Lexachrom for violations it said threatened public safety.
The lab performed testing on cannabis sold under major brands, including Stiiizy, according to the New York Times.
It’s the strongest move yet to crack down on allegedly unscrupulous cannabis testing laboratories in New York, where total sales recently topped $1 billion so far this year and could reach $2 billion for 2025.
Strongest move against alleged marijuana testing lab wrongdoing in New York
Regulators across the country are cracking down on testing labs after widespread complaints of THC potency inflation and data manipulation that’s allegedly allowed product contaminated with pesticides or mold to be cleared for sale to the public.
In a statement, Felicia A.B. Reid, OCM’s acting executive director, said the agency “doesn’t play when it comes to these kinds of violations.”
“New Yorkers expect transparency in the cannabis they purchase and that OCM is doing the work to investigate licensee malpractice,” she said.
“When a lab fails to follow regulatory safety and reporting standards, it violates public trust and puts the health of New Yorkers at risk.”
Reached via phone by the New York Times, Lexachrom’s owner of record, Alex Woodmass, abruptly hung up, the paper reported.
Lab was at center of market’s biggest cannabis recall
In official documents, OCM accused Lexachrom of falsifying results – a practice known in the industry as “dry-labbing.”
According to OCM, the agency is seeking:
- To ban Lexachrom from the industry for up to three years.
- To impose penalties ranging from $890,000 to more than $2 million.
- A “formal written closure plan to resolve outstanding issues.”
OCM had ordered the lab temporarily closed on May 14 after citing six alleged violations related to data and document retention, lab procedures and safety of the facility.
The lab failed to share certificates of authenticity and lab principals dodged meetings with OCM officials, the agency said.
OCM later recalled 12 lots of cannabis flower tested by Lexachrom in June and July.
