A Florida-based cannabis company, Bhang Corp, has settled a lawsuit that claimed that the company’s edible chocolate products did not contain the amount of THC and CBD content as advertised.
The lawsuit filed by Charles Ballard in 2019 alleges that the company “knowingly” misrepresented the THC and CBD content in its products, an act that was in breach of the California consumer-protection laws. The plaintiff allegedly bought Bhang’s medicinal chocolates between 2016 and 2018 and expected the products to contain specific amounts of CBD and THC but found out later that that wasn’t the case.
Ballard sought the services of an independent lab which tested the chocolate and found it lacking the amount of content advertised by Bhang Corp.
The settlement was fully reached according to a motion filed by Ballard on Friday. “The lawsuit has been settled in its entirety as to all parties and all causes of action,” said Ballard.
In August, Bhang reached a partial settlement with Ballard. However, according to an amended complaint, several other parties such as Sol Distro and Kaya Management Inc. (a subsidiary of the Canadian company Origin House operating under the cannabis company CannaRoyalty Corp) were listed as defendants on the case.
The lawsuit is one of many class-action suits around the country stalled by judges awaiting FDA regulations on CBD. However, US District Judge Jesus Bernal said in last week’s ruling that Ballard’s case involved alleged violations of consumer-protection laws of California. The Judge added that since the case has nothing to do with the awaited FDA regulations, it did not warrant an indefinite stay.
The continued lack of rules to govern the marketing of cannabis-derived CBD in food and supplements has seen some Judges put on hold CBD lawsuits to await guidelines. The US Food and Drug Administration has said it is gathering more data on the safety of CBD before issuing directives.