CBD candymaker settles lawsuit after judge declares lack of FDA guidelines irrelevant to ruling

A full settlement has been reached in one man’s suit against an infused products manufacturer for allegedly misrepresenting the THC and CBD content of its chocolate products and breaching consumer-protection laws in California.

In a motion filed on Friday, Charles Ballard said “the lawsuit has been settled in its entirety as to all parties and all causes of action.” Details of the settlement weren’t made public.

Ballard filed suit against Toronto-based Bhang Corp. in 2019, alleging that he purchased Bhang Medicinal Chocolate with “a specific quantity of THC and CBD” between 2016 and 2018 across Southern California. Ballard later said he had an independent lab test the chocolate, and the results allegedly revealed that Bhang chocolate did not contain the amount of CBD advertised.

Ballard reached a partial settlement with Bhang in August, but an amended complaint had listed several other parties as defendants on the case, including Canadian cannabis company Origin House, which falls under the umbrella of cannabis products and brands company CannaRoyalty Corp.

U.S. District Judge Jesus G. Bernal said in a ruling last week that Charles Ballard’s case centered on alleged violations of California consumer-protection law and not on the FDA’s long-awaited rules on CBD, making it unnecessary to issue an indefinite stay to the case to wait for the agency’s regulations.

The U.S. Food and Drug Administration has not yet issued regulations on how manufacturers can market cannabis-derived cannabidiol in food and supplements, and several judges have put CBD lawsuits on hold while the industry waits for the FDA guidelines. The agency has said it needs more data on the safety of CBD before it can issue the regulations.

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