News Summary
The Michigan Cannabis Regulatory Agency has reached a settlement with Viridis Labs, banning its founders from the state’s cannabis market due to unethical testing practices. This settlement follows a significant recall of $229 million in products and underscores the importance of ethical standards in cannabis testing. The CRA aims to restore trust in Michigan’s cannabis industry, having revoked Viridis’ license and transferred operations to minority investors.
Lansing, Michigan – The Michigan Cannabis Regulatory Agency (CRA) has reached a settlement with Viridis Labs, a marijuana testing facility, concluding a lengthy legal battle that has spanned several years. This settlement imposes serious consequences for Viridis’ founders, who have been permanently banned from participating in the state’s legal cannabis market.
As part of the settlement, the CRA has revoked the license for Viridis’ Lansing laboratory and transferred the license of its Bay City facility to minority investors associated with the company. The CRA’s actions were prompted by allegations that Viridis Labs engaged in unethical testing practices, including inflating THC content results and suppressing findings of banned pesticides in cannabis products.
The controversy surrounding Viridis Labs exploded in November 2021, when the CRA issued a sweeping recall of around $229 million worth of products tested by the lab. This recall not only emptied dispensary shelves for weeks but also marked the first decline in sales for Michigan’s cannabis industry in over a year. In November 2021, sales figures indicated that adult-use marijuana revenue had slipped to $120.8 million, down from $128.4 million the previous month.
Despite a court permitting half of the recalled products to re-enter the market after a month, legal conflicts between the CRA and Viridis persisted. The CRA accused Viridis of utilizing testing samples nearly 80% smaller than what is typically approved and using improper methods that undermined the integrity of test results.
Viridis Labs, under the leadership of CEO Greg Michaud, maintained that their testing methodologies were accurate and claimed competitors were providing flawed results, although the company did not substantiate these assertions. Nonetheless, the CRA argued that Viridis displayed a “sustained, deliberate pattern of noncompliance” that eroded trust in Michigan’s regulated cannabis environment.
The settlement also includes Viridis withdrawing its administrative complaint against the CRA, as well as dismissing two pending lawsuits that were previously filed in Michigan’s Court of Appeals. This agreement signifies a substantial win for the CRA, which had come under scrutiny for its perceived inadequate enforcement of testing regulations in light of ongoing litigation with Viridis Labs.
Historically, Viridis Labs held considerable market power, reportedly testing up to 70% of cannabis products on the market at the time. However, the company has faced multiple allegations, including the use of unverified testing methods, producing inconsistent test results, and failure to adhere to established testing protocols.
The current settlement ensures that the majority owners of Viridis, including Greg Michaud, Todd Welch, and Michele Glinn, are permanently barred from working within Michigan’s cannabis sector. In a bid to continue operations, Aurora Analytical Labs, an entity formed by the minority investors of Viridis, is seeking a license to operate the Bay City lab formerly under Viridis’ control.
This settlement marks a pivotal moment in Michigan’s cannabis industry, underscoring the significance of ethical standards and scientific accuracy in cannabis testing. The CRA has affirmed its commitment to uphold the integrity of the market, ensuring compliance among testing facilities moving forward.
Deeper Dive: News & Info About This Topic
- MLive
- Wikipedia: Cannabis in Michigan
- Detroit Free Press
- Google Search: Michigan cannabis testing
- ClickOnDetroit
- Google Scholar: Michigan cannabis testing labs
- Crain’s Detroit Business
- Encyclopedia Britannica: Cannabis
- Metro Times
- Google News: Viridis Labs
Author: STAFF HERE GRANDRAPIDS WRITER
GRAND RAPIDS STAFF WRITER The GRAND RAPIDS STAFF WRITER represents the experienced team at HEREGrandRapids.com, your go-to source for actionable local news and information in Grand Rapids, Kent County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as ArtPrize, Festival of the Arts, and World of Winter. Our coverage extends to key organizations like the Grand Rapids Chamber of Commerce and Grand Rapids Community Foundation, plus leading businesses in furniture, healthcare, and technology that power the local economy such as Steelcase, Spectrum Health, and Meijer. As part of the broader HERE network, including HEREDetroitMI.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
