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Cannabis company facing fines and potential business litigation

On Behalf of | Feb 3, 2020 | Business Litigation

Cannabis is a big industry in Oregon, and one of the leading cannabis companies in the state is facing expensive fines and legal complications due to what some consider questionable business practices. Business litigation and penalties from the state government can happen when there are preventable issues that could mislead or cause consumers harm. In this case, Cura Cannabis was accused of mislabeling certain vaping products it produces and distributes.

When it comes to vaping and products that involve consumable products, proper labeling is crucial. The state says that the company wrongfully claimed almost 200,000 vapes were 100% marijuana when there were actually other additives used in the product. The company will have to pay the biggest fine levied against a cannabis company since the state began giving marijuana businesses licenses to operate in 2016. The fine amounts to $110,000.

Oregon state officials take the safety of the cannabis industry seriously. In the name of consumer safety and honest business practices, the state regularly fines companies for problems. However, due to the serious nature of this particular offense, the original penalty proposed was the complete revocation of the business license altogether. This company apparently has a history of issues and is in the process of being acquired by a marijuana company from another state. 

Business litigation and fines from the state can be costly to any type of business. This is especially true for a company that has already faced its share of complications and setbacks. Regardless of the issue at hand, it may be necessary to seek experienced legal counsel regarding the best way to confront these issues and protect the long-term interests of the business.