Clearly, we right here at Dab Connection are just as excited about CBD oil, terpenes, and other elements of our preferred plant, as anyone else is. Even even though our present interest is mostly primarily based in the recreational usage, as quickly as established clinical benefits and approval come by means of for healthcare usage, we’ll be positive to note it. But till then, instances like the Curaleaf class action lawsuit are a lesson in why we should really take caution not to make unfounded claims about cannabis derivatives…
Up till lately, Curaleaf Holdings, Inc. has been a single of the biggest cannabis providers in the globe, just after the acquisition of Cura Partners to the tune of almost $1 billion. When news of that acquisition came out in Could of 2019, their stock soared. But the proverbial mighty have fallen due to the fact the FDA sent Curaleaf a warning about the claims they have been creating about their CBD items. Curaleaf pulled all marketing claims about their product’s wellness advantages.
And then their stock tanked really hard, to significantly less than half its Could 2019 peak. So now this is what the lawsuit is about, a class-action securities complaint against Curaleaf that was filed on August five in the Eastern District of New York. The suit’s complaint is that of violations of the Exchange Act, for federal securities law concerning the creating of unfounded claims about a item which causes inflation of the stock price tag.
Right here is RK Attorneys with an explainer video:
For the record: the FDA has authorized NO more than-the-counter cannabis drugs
That is zero, zip, and nada. Not CBD oil, not terpenes, not THC, practically nothing. They have authorized about 4 drugs derived from cannabis items for prescription use only. Right here is the FDA clarifying their efforts in cannabis item investigation, and right here is an substantial section of queries and answers by the FDA about cannabis items relative to their healthcare approval.
“To date, the agency has not authorized a promoting application for cannabis for the remedy of any illness or situation. FDA has, having said that, authorized a single cannabis-derived and 3 cannabis-connected drug items. These authorized items are only out there with a prescription from a licensed healthcare provider.”
So there it is in black and white. Purchased it more than the counter? Not authorized.
In certain, focus appears to be on Curaleaf for its claims of a veterinary medicine derived from cannabis. From Curaleaf’s former promoting:
“ CBD has been shown in initial third-celebration research to assistance a pet’s all round wellness like the possible to assist handle discomfort and anxiousness.”
As opposed to that FDA FAQ:
“FDA is conscious of some cannabis items getting marketed as animal wellness items. We want to tension that FDA has not authorized cannabis for any use in animals, and the agency can not make sure the security or effectiveness of these items. For these causes, FDA cautions pet-owners against the use of such items and recommends that you speak with your veterinarian about acceptable remedy selections for your pet.”
There undoubtedly appears substance to the claims of the suit primarily based on these text quotes. We undoubtedly cannot speak for Curaleaf’s motives or intentions, of course. They may perhaps forge a new company path and recover however, who knows?
Share your thoughts on Curaleaf and the FDA right here or in our forums.