Cannabis companies kicked out of Colorado after products linked to health risks, liver injuries
COLORADO (KRDO) – Three cannabis companies have been ordered to cease operations in Colorado following a settlement after their products were linked to health risks they failed to disclose, according to the Colorado Attorney General's Office.
On Sept. 19, Attorney General Phil Weiser announced that he had reached a $400,000 settlement with the manufacturers and distributors of the "1906" brand of cannabis products, along with their co-founder, Peter Barsoom.
Under the settlement, three companies – Nuka Enterprises LLC, Sima Sciences LLC, and Nuka Properties LLC – have been ordered to stop their operations in Colorado.
The settlement followed an investigation into the 1906 brand, which found that the three companies had failed to disclose health risks associated with the products while misrepresenting the products' health benefits, the AG's office said.
"Colorado’s cannabis regulations are the nationwide gold standard for protecting consumers, and the companies in this case broke the law by failing to disclose potential health risks from their products," Weiser said. "With this action, I am holding the companies and one of its co-founders accountable to ensure they face consequences for their deceptive business practices. I will continue to hold accountable those who evade Colorado’s cannabis and consumer protection laws."
From 2016 to 2024, Sima Sciences LLC sold a line of edible products in Colorado under the brand name "Drops." One of those products, called "Midnight Drops," was marketed as a sleep aid.
But starting in 2020, the company started receiving customer complaints about Midnight Drops, reporting that the product was causing liver problems. Despite these warnings, the company allegedly continued manufacturing and distributing the product, the AG's office said.
In June of 2023, reports of negative health effects associated with "Midnight Drops" led the Colorado Department of Public Health and Environment (CDPHE) and the Colorado Department of Revenue’s (DOR) Marijuana Enforcement Division to notify customers about the potential harm the product could cause.
In that release, the agencies said Sima Sciences LLC had stopped production of the line and was working with retailers to remove the product from shelves.
However, a subsequent investigation by the AG’s office found that Sima Sciences was aware of the health complaints as early as 2020 but failed to take proper action. Investigators say the company not only continued production but also did not adequately notify retailers so the product could be pulled from shelves.
In a release, Weiser said if the companies meet certain conditions down the line, they may be allowed to resume selling products in Colorado; however, if they violate the terms of the settlement, they'll be required to pay an additional $600,000 to the state.
To read the full settlement between the companies and the AG's office, click here.
If you believe a cannabis company is misrepresenting its products, you're encouraged to file a complaint with the AG's office at StopFraudColorado.gov.
Stay up to date with the latest local news, sports, and investigations by downloading the KRDO13 app. Click here to download it from the Apple App Store. Android users can download it from Google Play here.
