Two Class Action Lawsuits Filed Against CBD Brands
In our previous blog post, we wrote about the FDA’s recent releases detailing how they were unwilling to label CBD as a safe dietary supplement. In response to the FDA’s decision, two class action lawsuits have been filed in California against two major CBD companies: Charlotte’s Web and Infinite Products Co. The class action suits claim that by not operating in according with federal regulations and standards, the two companies have violated California law.
Plaintiff Michele McCarthy claims that she bought a bottle of CBD oil from Charlotte’s Web for over $250 that was labeled as a dietary supplement. According to nutraingredients-usa.com, the company Charlotte’s Web responded by saying, “The Company believes that its products are accurately labeled and that the claims are without merit. The Company intends to vigorously defend itself against any such suits.”
In the other suit, according to natlawreview.com, “plaintiff Adam DaSilva filed suit against Infinite Product Co alleging the company sells food, supplement and cosmetic products that are unapproved new drugs in violation of federal law. DaSilva said in the proposed class action suit that Infinite Product’s CBD products are misleadingly labeled and are illegal to sell. In the complaint, DaSilva pointed to the FDA’s recent warning letter to Infinite Products, detailing numerous violations regarding its products, including skin creams and gummies. According to the complaint, there are “[m]any unanswered questions and data gaps about CBD toxicity exist, and some of the available data raise serious concerns about potential harm from CBD.” Indeed, DaSilva noted that, in a revised Consumer Update, FDA stated that it “is not aware of any basis to conclude that CBD is [generally recognized as safe (GRAS)] for use in conventional [human or animal] food.”
These suits were filed quickly after the FDA’s release of information. Further, the FDA had stated that it hopes to continue to do research to ensure fairness to all parties involved and come up with regulatory finality as soon as they can. There are many upstart CBD companies who are affected by this news and are waiting eagerly for the FDA to tell them exactly how they can and cannot market their products.
This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com
