in Newswire Published on December 5, 2019

Charlotte’s Web, CV Sciences Facing Lawsuits Over ‘Mislabeled’ CBD ‘Dietary Supplements’ [DISMISSED]

Last Updated on May 17, 2023

McCarthy v. Charlotte’s Web Holdings, Inc.

Filed: November 30, 2019 ◆§ 5:19-cv-07836

Two proposed class actions claim Charlotte's Web and CV Sciences have mislabeled several of their CBD products as "dietary supplements" without receiving FDA approval to do so.

Defendant(s)

Charlotte’s Web Holdings, Inc. CV Sciences, Inc.

Law(s)

State(s)

California

May 17, 2023 – “Mislabeled” CBD Products Class Action Voluntarily Dismissed

The proposed class action lawsuit detailed on this page was voluntarily dismissed without prejudice by the plaintiff on March 20, 2020.

Court records show that just a few days before, on March 16, defendant Charlotte’s Web filed a motion to dismiss the plaintiff’s complaint or stay the case “pending completion of regulatory action by the U.S. Food and Drug Administration.” The 38-page motion argued that, among the complaint’s “many fundamental infirmities,” the court lacked jurisdiction over some of the claims, the plaintiff’s claims were insufficiently pleaded and the woman lacked standing as she had been fully refunded for her purchase and had therefore suffered no injury.

Following the defendant’s motion, the plaintiff’s counsel filed a three-page notice of dismissal on March 20 that United States District Judge Beth Labson Freeman approved the same day.

No information is given as to why the plaintiff dropped the suit.

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Two CBD companies have been hit with proposed class action lawsuits that claim several of their cannabidiol products are mislabeled under federal regulations. The lawsuits argue that defendants Charlotte’s Web Holdings, Inc. and CV Sciences, Inc. have marketed CBD oils, sprays, liquid capsules, and gummies, among other products, as “dietary supplements” without receiving FDA approval to do so.

The FDA, according to the cases, has stated that it is “currently illegal” to market CBD as a food additive or dietary supplement due to concerns the agency has about the chemical’s safety and its effects on the body.

“The agency wants to be clear that we have seen only limited data about CBD’s safety and these data point to real risks that need to be considered,” the FDA warned in a statement on its website.

The lawsuits argue that despite the FDA’s warnings and refusal to recognize CBD products as acceptable dietary supplements under the Food, Drug and Cosmetic Act, the defendants have advertised and marketed their products as such. The following pictures were included in one of the complaints:

The lawsuits identified the following products as potentially mislabeled.

Charlotte’s Web:

CBD Oils
CBD Liquid Capsules
CBD Gummies
CBD Isolate

CV Sciences:

CBD Sprays
CBD Oil Drops
CBD Gummies
CBD Capsules
CBD Softgels

According to the cases, which mirror a similar suit filed against CBD retailer Infinite Product Company, the defendants’ labeling of their CBD products as dietary supplements renders them “illegal to sell” under federal law. The plaintiffs in both cases claim they would not have purchased the defendants’ products, or would have paid less for them, had they known the supplements were mislabeled and falsely advertised.

The Charlette’s Web lawsuit seeks to cover anyone who purchased the defendant’s products in the United States, or, alternatively, in California.

The CV Sciences case looks to cover anyone who purchased that company’s products in the United States during the “class period,” with two proposed subclasses of California and Arizona residents.

The two complaints can be read below.

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