The Oregon Liquor Control Commission has levied a $110,000 fine on Cura Cannabis – the state’s largest cannabis company – over allegations that the firm incorrectly labeled its Select vape products as 100 percent cannabis but contained “botanically derived terpenes and/or medium-chain triglyceride (MCT) oil as an ingredient,” according to an Oregon Live report.
The settlement between the state and the company includes a $10,000 “dishonest conduct” sanction, which is lieu of a 34-day license suspension. Those botanically derived terpenes were briefly banned by Gov. Kate Brown last fall during the early vaping-related respiratory illness episodes.
Two days after the announcement of the settlement, a Portland couple filed a lawsuit against Cura demanding that the company give up any profits it made from the mislabeled products, according to Willamette Week. State regulators claim that Cura mislabeled more than 180,000 Select vape products. Emails obtained by the Portland Business Journal show the company told the OLCC the mislabeling was an internal communication problem rather than an attempt to deceive.
Michael Fuller, the attorney who filed the suit on behalf of the couple in Multnomah County, said the final judgment against the company could “exceed $37 million including statutory damages.”
The OLCC action and lawsuit come as Massachusetts firm Curaleaf Holdings Inc. is trying to close its all-stock deal to buy Cura. The deal, announced last year, was initially worth nearly $1 billion but, according to Oregon Live, the transaction is now worth about $400 million following sharp declines in cannabis stocks and lower overall company valuations.