CuraLeaf (CSE: CURA) receives warning letter from the FDA

While Canadian investors have been focussed on the CannTrust scandal, the U.S. cannabis stocks have been dealing with a “warning” letter to CuraLeaf from the Food and Drug Administration (FDA). The letter was described as a “warning” from the FDA. The letter apparently said CuraLeaf was “illegally selling” CBD products with “unsubstantiated claims” that the products treat cancer, Alzheimer’s, opioid withdrawal, pain and pet anxiety.

Apparently the letter from the FDA to CuraLeaf CEO Joseph Lasardi included the following. I have added the highlights. “CBD Lotion,” “CBD Pain-Relief Patch,” “CBD Tincture,” and “CBD Disposable Vape Pen” products are unapproved new drugs sold in violation of sections 505(a) and 301(d) of the Federal Food, Drug, and Cosmetic Act (the FD&C Act), 21 U.S.C. 355(a) and 331(d). Furthermore, these products are misbranded drugs under section 502(f)(1) of the FD&C Act, 21 U.S.C. 352(f)(1). FDA has also determined that your “Bido CBD for Pets” products are unapproved new animal drugs that are unsafe under section 512(a) of the FD&C Act, 21 U.S.C. 360b(a), and adulterated under section 501(a)(5) of the FD&C Act, 21 U.S.C. 351(a)(5).”

This has all the trappings of a case where the cover-up is worse than the crime.