Worcester Business Journal

wbjournal.com | February 10, 2025 | Worcester Business Journal 9 "It couldn't pay its bills because the clients couldn't or wouldn't pay their own bills, and the owners/investors were tired of subsidizing the clientele," he wrote. "e legal cannabis industry here in Mass. has some pretty severe structur- al problems right now." ProVerde Laboratories, which has sounded the alarm regarding the state's testing space, is not a defendant in the case and has also been vocal about the problems it faces. Peter Ianuzzi, CEO of ProVerde, told WBJ in 2023 state regula- tors were asleep at the wheel. "e biggest problem is that nobody is looking," Ianuzzi said. Persistent pot problems In October, an investigation from the Wall Street Journal found from April 2021 through 2023 labs in Massa- chusetts that failed fewer tests than other labs in the previous year tested a median of 84% more samples during the following 12 months, suggesting growers were seeking out labs likely to approve products. CCC told WSJ environmental factors and different testing methods can pro- duce atypical results. However, accusa- tions of fraud and businesses shopping between labs to get more desirable test- PHOTO | COURTESY OF MCR LABS Strength in Leadership: Celebrating the Women of Fletcher Tilton WORCESTER | FRAMINGHAM | BOSTON | CAPE COD | PROVIDENCE FLETCHERTILTON.COM | 508.459.8000 At Fletcher Tilton, we are proud to celebrate the dedication, expertise, and leadership of our 12 exceptional women attorneys who are shaping the future of law and inspiring the next generation. Kelly A. Akana Lucille B. Brennan Elisabeth A. Finn Anne E. Grenier Nisha Koshy Tricia L. Koss Karen M. LaFond Mia H. Lahti Rachael M. Poirier Amanda E. Risch Rosemary M. Tootell Theresa M. Varnet Unpacking MCR's lawsuit claims The lawsuit from MCR uses what the firm says is public cannabis testing data to allegedly show a number of sudden changes in potency or contamination testing, which can only be explained by result manipulation or other corruption. Lab Location Example of lawsuit claim Analytics Labs Holyoke A cultivator who switched their potency testing from MCR to Analytics saw a 43.7% increase in their THC totals. Assured Testing Tynsborough A cultivator who switched Laboratories their potency testing from MCR to Assured saw a 19.1% increase in THC totals. CDX Analytics Salem A cultivator who switched from MCR to CDX saw its mold failure rate drop from 9.4% to zero. Green Analytics Framingham A cultivator who switched their potency testing from MCR to Green Analytics saw a 14.8% increase in THC totals. Green Valley Holyoke Green Valley was responsible for 36 out of Analytics 37 cannabis flower samples which tested over 40% in the first quarter of 2024, with a client who switched from MCR to Green Valley seeing a 46.3% increase in total THC. Kaycha Labs Natick A cultivator who switched from MCR to Kaycha saw a 17.4% increase in THC totals. MassBiolytics Corp. Dracut A cultivator who switched from MCR to MassBiolytics saw its mold failure rate drop from 66.7% to zero. Safetiva Labs Westfield A cultivator who previously used an unidentified lab saw its THC totals increase 38.9% after switching to Safetiva. Note: CDX shuttered its operations in early 2024. Source: MCR lawsuit filed in Suffolk County Superior Court ing results have been common knowl- edge in industry circles for years. Lab employees and others in the cannabis industry have long lamented the state of cannabis testing regulations and enforcement in Massachusetts, with MCR executives telling lawmakers in July 2023 that fraud and abuse were rampant in the space, according to State House News Service. Problems have arisen with product safety beyond issues with testing meth- ods themselves; an audit conducted in September 2023 by Massachusetts State Auditor Diana DiZoglio found Canna- bis Control Commission had allowed more than $10 million in marijuana products whose testing approvals had expired to be sold to consumers. CCC sought to tighten its testing requirements in December, issuing an administrative order which attempted to clarify existing testing protocols by telling cannabis businesses they may only submit one test sample package to a single testing lab for all compli- ance-related testing, according to an agency press release. is move sought to end the practice of lab shopping, where cultivators and manufacturers seek out labs with high potency results and low failure rates. W

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