Colorado Lab Settles in $100 Million Lawsuit with Medical Marijuana Inc.

April 27th, 2015 – As part of a $100 million lawsuit filed by Medical Marijuana Inc., over false Picture 12claims in a “special report” from Project CBD, a top Colorado lab, Stewart Environmental has now settled.

Dr. Stuart Titus, CEO and President of Medical Marijuana, Inc. said: “Now that Medical Marijuana, Inc. has proven the claims in the Project CBD report that are blatantly and maliciously baseless, we will pursue the other parties involved in this slander and libel to the fullest extent of the law.”

Last October we reported that Project CBD, a non-profit organization focusing on cannabidiol research and education, released a report entitled “HEMP OIL HUSTLERS: A Project CBD Special Report on Medical Marijuana, Inc. HempMeds and Kannaway.” This report cast doubt on the quality of the products manufactured and sold by Medical Marijuana Inc. and its subsidiaries as well as questioned the integrity of its management and business practices.

Subsequent to the report by Project CBD and the ensuing lawsuit by Medical Marijuana, Inc., Project CBD and Cannavest (the company that had provided the first cannabidiol samples tested by Project CBD) issued a joint statement that provided additional test results that showed no contamination in the products in question.

As part of the settlement, the Colorado lab, Stewart Environmental, has issued a written and VIDEO statement where the CEO of the lab admits that they let a preliminary test result on Real Scientific Hemp Oil (RSHO) out of the lab by mistake.

Stewart Environmental CEO David Stewart says that Jason Cranford, who’s also named in the $100 million suit, then took the prelim report and published it to Facebook and later sites like Project CBD picked it up as well.

Stewart admits that they unfortunately let the preliminary result out by mistake, and that it incorrectly said there were heavy metals in RSHO, but they quickly gave Cranford the corrected, final report right away. Testing for heavy metals is a complicated multi-step process that provides a false-positive for heavy metals if the appropriate corrections are not incorporated. Unfortunately, Cranford had publicized the prelim report and the damage was done.

It’s important to remember that the cannabis plant, whether it be hemp or marijuana is considered a bioaccumulator, meaning that the plant will draw toxins from the soil as it grows. As a result of this fact, it becomes of critical importance that the growing and refining practices of manufacturers maintain the highest of standards if customers are to have trust in the final product.

Late last night, The Hemp News also learned that Jason Cranford has also settled in the case and is set to release his version of the story in an upcoming video testimonial.

This lawsuit is the first of its kind for the emerging medicinal hemp industry. A rapidly growing number of companies are legally importing hemp mainly from Europe and refining them to produce cannabidiol (CBD), a nutritional supplement that is proving to have many health benefits.

Medical Marijuana, Inc. has been a pioneer in the emerging cannabidiol CBD industry. Also, KannaLife Sciences, a Medical Marijuana, Inc. investment portfolio company, was recently awarded a license from the National Institutes of Health regarding regarding “U.S. Patent 6,630,507,” to help treat concussions and post-concussion symptoms.

In an interview with The Hemp News, Dr. Stuart Titus, CEO and President of Medical Marijuana, Inc. spoke about the lawsuit and its impact:

“This report (by Project CBD) was false. I’m relieved that the true facts are finally coming to light and we are able to set the record straight.” He further added: “This situation has had an unfortunate impact for our shareholders, our customers and the industry at large. Nevertheless, it has strengthened our resolve to continue to produce the highest quality natural cannabidiol-based products.”

Cannabidiol (CBD) can be sourced from either medical marijuana or hemp, but this fact can cause confusion for consumers and legislators alike. The main differences between these two sources is that marijuana contains the euphoric effects of THC along with the non-euphoric effects of CBD, whereas purely hemp-sourced CBD does not produce a euphoric “high”. This key difference has led to different regulatory stances by legislators across America, leading to many states passing “CBD-only” laws whereas medical marijuana advocates are arguing for legalization of whole plant medicines containing both THC and CBD.

Given these complexities, within the larger legalization context it appears that the Medical Marijuana legalization movement is competing with the Cannabidiol CBD movement for attention, support and acceptance among the public and legislators. It is very likely that this industry competition dynamic sits at the very heart of this conflict; the initial report by Project CBD and the subsequent lawsuit.

It is likely we will continue to see further conflicts and growing pains as the hemp and medical marijuana industries mature and vie for attention.

You can read Medical Marijuana Inc.’s article here.

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