The New York State Office of Cannabis Management (OCM) has served a Notice of Pleading (Pleading) against Long Island-based Lexachrom Laboratory after an extensive investigation uncovered severe regulatory violations. OCM's investigation included two site inspections and an in-depth audit of Lexachrom's records and practices. The findings revealed serious failures and lapses in quality assurance processes.
The OCM's investigation also linked Lexachrom to a recall where cannabis products that passed Lexachrom testing were, upon additional testing, discovered to contain unacceptable levels of pesticides. The alleged violations jeopardized public health and safety; compromised the strict standards of laboratory operations; and attempted to undermine the integrity of cannabis lab testing, which aims to ensure transparency and consumer confidence.
While Lexachrom voluntarily surrendered its permit, the Office of Cannabis Management (OCM) seeks additional actions as part of the proposed penalties. These include banning the laboratory from participating in the industry for up to three years, imposing financial penalties totaling between $890,000 and more than $2 million, and requiring a formal written closure plan to resolve outstanding issues.
The Pleading is a critical step in holding Lexachrom accountable to consumers and regulation. By enforcing strict and consistent standards and taking decisive action, the Office of Cannabis Management (OCM) is working to protect consumers and communities while providing a level playing field for all licensees. Among other penalties sought through the pleading, OCM seeks a three-year participation ban against Lexachrom and the imposition of significant financial penalties.
"New Yorkers expect transparency in the cannabis they purchase and that OCM is doing the work to investigate licensee malpractice," said Felicia A.B. Reid, Acting Executive Director of The New York State Office of Cannabis Management. "When a lab fails to follow regulatory safety and reporting standards, it violates public trust and puts the health of New Yorkers at risk. OCM doesn't play when it comes to these kinds of violations, and this agency will continue to take clear-eyed action to make sure that all licensees take the integrity of this industry seriously."
"Testing labs are a cornerstone of the legal cannabis system," said Stephen Geskey, Director of Labs, Compliance and Licensing at The New York State Office of Cannabis Management. "When a lab fails, it endangers consumers and disrupts the entire market. OCM is committed to protecting New Yorkers by enforcing strict standards and taking swift action to ensure the cannabis products on shelves are safe, tested, and reliable."
