A Vermont hemp processor is suing a Maryland grower, accusing the company of lying about the plants it sold being pesticide-free.
The test results caused buyers to cancel orders for CBD and terpenes from Newton Hill Labs, “resulting in substantial lost profits.”
Newton Hill Labs argues that it lost more than $400,000 in profits from the biomass, plus another $500,000 in lost profit on terpenes.
The plaintiff told the court it is “left with hundres of thousands of dollars’ worth of unsellable terpenes.”
The lawsuit also names Kush Tourism, a Washington-based company that Newton Labs said brokered the deal. Newton Labs said it paid $132,000 for the hemp plants.
“Newton Hill informed Kush that its biomass needed to be pesticide and herbicide free,” the lawsuit alleges. “Kush understood and promised to procure such biomass.”