Michigan cannabis regulators last week placed a hold on products from Sky Labs but have not publicly offered any explanation, MLive reports. Cannabis Regulatory Agency (CRA) spokesman David Harns told MLive that he “can’t acknowledge or confirm an investigation.”
Attorney Denise-Policella, who represents Sky Labs, told MLive that the hold was placed last Thursday on all of the company’s products, all worth more than $5 million.
“At 4 p.m. they received a call from a client and literally all of their product started going on administrative hold. [The CRA] said it’s related to an investigation. It does not appear to be a public health or safety matter, but I’m speculating, because they didn’t issue a recall.” – Policella to MLive
Policella said the products that were placed on hold by the CRA all seem to originate from the same licensed grower and includes products that have passed testing and already been shipped to licensed retailers. She added that Sky has previously had a batch of products placed on hold by the CRA for 13 months without explanation.
“The (CRA) is welcome to investigate whatever they would like,” she said in the report. “It is my opinion that the (CRA) does not have the authority – and should not have the authority – to deprive companies of their product. It has the ability to drive people out of business and blame it on … an ongoing investigation that they’re not required to tell us the details of.”
In November, Michigan regulators issued a recall of products tested by Viridis Laboratories and Viridis North which affected products at more than 400 retail locations throughout the state. That move led to a lawsuit by Viridis which ultimately led to a judge blocking part of the recall, saying it was “in all likelihood based upon an arbitrary decision.”
Policella speculated that the reluctance of the CRA to issue a formal recall on the products may be due to that case in which the Court of Claims judge questioned some of the CRA’s actions leading up to the recall, which was the largest ever recall in Michigan.
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