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(FOX 2) - After years of fighting in the courts, Michigan and what was once the state's largest marijuana testing company have finally come to a resolution.
The owners of the state-licensed safety compliancy facility Viridis will be banned from ever working in the weed industry again.
Big picture view:
The owners of a marijuana testing laboratory in Michigan have been banned from operating in the industry, ending a years-long dispute between the state and Viridis.
The firm, which was owned by Todd Welch, Gregoire Michaud, and Michele Glinn, can no longer work in the cannabis sector in Michigan and have agreed to admit to the violations alleged by the Cannabis Regulatory Agency.
In addition to having their license revoked, the company will be required to shut down their Bay City location as well as dismiss its own complaints against the state that alleged that regulators had disrupted its business.
It's the end of years of litigation between the two parties after Michigan said it found evidence that Viridis had failed to follow approved testing procedures, which led to inaccurate or unreliable test results.
The backstory:
The company became the target of a massive recall of marijuana products in 2021 after the CRA found testing issues at Viridis Laboratories and Viridis North.
Inaccurate testing could lead to potential health effects, including an infection that is caused by a type of mold for those with weakened immune systems.
Court filings against Viridis detailed instances where the laboratory had not submitted acceptable reports and "failed to maintain internal standard operating procedures for required safety tests."
An investigation was initiated in September 2021 and an on-site audit took place a month later. During that visit, regulators noticed several instances where employees at the lab were not determining whether products being tested had passed inspection for foreign matter.
There were also instances of powdery mildew on a sample being observed by staff, the state argued.
Other instances of quality control issues were included in other documents presented in court.
At the time, Viridis pushed back on the CRA's recall, arguing that the agency's actions were unjustified and had led to an unnecessary disruption of business. Over the years, a legal back-and-forth has ensued between the state and the laboratory, which was Michigan's largest marijuana testing company.
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Catching up:
This week, the state said a settlement with Viridis had been reached, which would end the series of court battles and disciplinary issues.
The conclusion means a revocation of the owner's license for operating in the state and a dismissal of their suits against the state.
What they're saying:
"This is justice, plain and simple," said Brian Hanna, the executive director of the CRA. "Viridis failed to uphold the standards required of marijuana safety compliance facilities in Michigan. Viridis circumvented the rules. Their majority owners will never operate in this space again, and the Michigan cannabis industry will be stronger for it."
The director of CRA's reference laboratory also chimed in on the settlement.
"We are at a pivotal moment, where scientific progress in cannabis is unfolding under our watch," said Claire Patterson. "Here, we had a responsibility to get this right and set a critical precedent. Scientific integrity isn’t a formality – it’s the foundation of the cannabis industry. The future of this industry depends on ethics, transparency, and science we can all trust."
The Source: Court filings and a news release from the Cannabis Regulatory Agency was cited for this story.