Anresco Laboratories and Infinite Chemical Analysis Labs have decided to drop their lawsuit against 13 other testing labs they accused of manipulating marijuana testing results to gain more business.
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Court documents show that the two California-based labs filed a dismissal without prejudice on August 3rd in U.S. District Court for the Central District of California.
But the story doesn’t end there. Josh Swider, co-founder and CEO of Infinite Chemical Analysis Labs, says he plans to refile the lawsuit.
“We stand by the allegations and merits in the complaint filed in federal court,” Swider shared in an email to MJBizDaily. “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.”
The pesticide scandal shaking the industry
Swider and his lab have been making headlines recently, especially as they’ve been heavily involved in a pesticide scandal that’s sent shockwaves through California’s regulated cannabis market.
Infinite Chemical Analysis and Anresco were among the labs that flagged illegal pesticides in various cannabis products being sold in the state’s legal market. These findings didn’t go unnoticed. Their reports caught the attention of California’s Department of Cannabis Control (DCC) and even Governor Gavin Newsom, prompting an investigation that was covered by WeedWeek and the Los Angeles Times. The reports highlighted serious contamination problems within the state’s cannabis supply chain.
Since that initial report in June, the DCC has issued multiple recalls on cannabis products that contained illegal pesticides.
Most of these recalls have pointed to the use of chlorfenapyr, a banned pesticide commonly used in greenhouses to deal with pests like caterpillars and mites.
This growing issue has created tension between labs, retailers, brands, and regulators, and it’s shaking the trust in what’s considered the world’s largest regulated marijuana market.
The original lawsuit
Anresco and Infinite Labs initially filed a joint lawsuit on June 24th, claiming that 13 independent testing labs were falsifying their results. They accused the labs of inflating THC potency numbers and ignoring contaminants in their Certificates of Analysis (COAs), which put consumers’ health at risk.
Defendants push back
Not everyone agrees with these accusations. Myron Ronay, CEO of BelCosta Labs, one of the 13 labs named in the suit, has issues with how Anresco and Infinite Labs conducted their tests.
“They didn’t test the same products we tested; I stand by all our results,” Ronay told MJBizDaily in a phone interview.
Ronay also questioned why the plaintiffs were taking on the role of policing other labs when they’re all 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’
Another defendant, Spencer Wong, CEO of Encore Labs, also voiced his doubts about the lawsuit’s intentions and credibility.
“Is it just a publicity thing for them?” Wong asked during a phone interview with MJBizDaily.
“A lot of the stuff in the suit is based off their own testing results, not the DCC,” Wong continued. “The DCC didn’t come out and say there’s gaps in the testing.”
Wong added that Encore Labs is prepared for the case to continue in state court, where it will likely be refiled.
“They’re just allegations at this point,” Wong said. “There’s no evidence.”
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