Worcester Business Journal

8 Worcester Business Journal | February 10, 2025 | wbjournal.com BY ERIC CASEY WBJ Managing Editor T he controversy surrounding Massachusetts cannabis testing practices and labs has spilled over into the courts, as Framingham-based MCR Labs has filed a lawsuit against nine com- petitors, saying their alleged manipula- tion of testing results is causing harm to both consumers and MCR's business. e lawsuit cites WBJ's investigation into dysfunction at the state agency Can- nabis Control Commission, referencing the fact Julie Johnson, the agency's chief of research, said when she was eventually able to obtain testing data from the agen- cy, it showed a large amount of samples fell just below the state's threshold for contaminants, something she said was a near statisti- cal impossibility. e 50-page lawsuit, filed in Suffolk County Superior Court on Jan. 30, claims the actions of the labs has violated state law, intentionally interfered with MCR's business relations, and led to unjust enrichment. "Despite the regulatory requirements, the rigors of accepted and accredited testing procedures, and the fact that the true THC potency and presence of contaminants are determinable with ac- curacy using validated testing methods, defendant labs have demonstrated their willingness to provide more favorable results — regardless of their empiri- cal fallaciousness — in order to tempt customers away from other labs, namely plaintiff," the lawsuit reads. Citing data MCR obtained through records requests, the firm notes what it says are clear examples of fraud. "Honest and accurate testing is essen- tial for consumer safety, public health, and a fair and prosperous market," MCR wrote in a Jan. 31 press release accompa- nying a copy of the lawsuit. "Fraudulent testing practices harm patients, con- sumers, industry workers, and ethical businesses. We have fought against widespread result manipulation in the TESTING their patience Fed up with longstanding issues over cannabis testing and product safety, Framingham lab sues competitors cannabis industry for years." Johnson told WBJ in October she tried in vain for years to obtain testing data from the agency but was rebuffed. en, at a science-themed cannabis event host- ed by MCR she attended in December 2023, she was shocked when one speaker presented a thorough analysis of the very data she had sought, accessed via a public record request. at data now serves as the basis for many of MCR's claims and appears to show CCC had access to data showing probable fraud for years, but took little action. Eight labs named MCR alleges some of its defendants participated in round robins, when a cannabis cultivator or product manu- facturer sends samples from the same product to multiple labs at once. MCR claims this is done in order to see which one provides the most favorable result, encouraging firms to inflate potency numbers and pass samples that would otherwise fail containment testing. e lawsuit names eight cannabis testing labs as defendants: • Analytics Labs, in Holyoke • Assured Testing Laboratories, in Tyngsborough •CDX Analytics, a Salem-based lab closed in 2024 •Green Analytics, in Framingham (formerly known as Steep Hill Massa- chusetts) • Green Valley Analytics, in Holyoke • Kaycha Labs, in Natick • Massbiolytics Corp., in Dracut • Safetiva Labs, in Westfield For each of the defendants named by MCR, the lawsuit includes data which MCR says it obtained from the state through public records requests and shows examples of fraud. A graph depicting one cultivator's transition from using MCR for testing to Green Valley Analytics shows the firm's THC testing results – used to measure product potency – increased 46.3% aer the switch. Another graph shows a MCR client who switched their testing to CDX Analytics saw their mold failure go from 9.4% to zero. MCR claims CDX was particularly well known in the industry for having low failure rates before its closure. e lawsuit states in the summer of 2023, a concerned consumer sent a sample of product to Milford testing firm ProVerde Laboratories aer spotting what appeared to be mold on the canna- bis. Aer the product failed mold testing and the consumer posted the results on social media, CDX's overall failure rate shot up from 3.3% to 28.1%, according to MCR's analysis of state data. CDX and five other firms did not respond to WBJ's requests for comment. When reached by WBJ by email, Green Valley Analytics declined to comment. ere are 15 cannabis testing labo- ratories licensed to operate in the state, according to CCC data. However, not all of them are operational; Marlbor- ough-based Indo Laboratories closed in September, with a LinkedIn post by for- mer Indo Lab Director Chuck Kreiman blaming clients' financial struggles. Michael Kahn, founder & CEO of MCR labs PHOTO | COURTESY OF PROVERDE LABS MCR's lawsuit is the latest fight over cannabis testing labs in Massachusetts, as the state struggles to ensure products are safe.

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