The wave of state enforcement actions against cannabis testing labs hit Michigan this week with the Cannabis Regulatory Agency ordering the shutdown of Viridis Laboratories.
Viridis inflated THC potency, passed products that had previously failed microbial tests, and failed to properly report its testing, according to the CRA. Viridis’ testing practices led to a massive recall in 2021 that affected about 64,000 pounds of product.
Viridis will lose its licenses and its three owners are banned from taking part in Michigan’s legal cannabis industry, following a settlement the company reached with the CRA. The company must shut down its Lansing location by Aug. 29, and it has until Sept. 28 to wind down operations at its Bay City location.
The company’s owners, Todd Welch, Gregoire Michaud and Michele Glinn, all of whom were at one point employed by the Michigan State Police, are no longer allowed to participate in the state’s legal cannabis industry.
Viridis also agreed to drop two lawsuits it filed against the CRA and admitted to all regulatory violations from six separate administrative complaints in 2022 and 2023 from the cannabis agency .
“This is justice, plain and simple,” said CRA Executive Director Bria Hanna, in a statement that accompanied the settlement announcement on Aug. 20. “Viridis failed to uphold the standards required of marijuana safety compliance facilities in Michigan. Viridis circumvented the rules. Their majority owners will never operate in this space again, and the Michigan cannabis industry will be stronger for it.”
Meanwhile, Viridis sent a notice to its clients about the company’s intention to keep its Viridis North location in Bay City open under new ownership.
“A new entity is in the process of seeking licensure at the Viridis North location and the hope is that this entity will be fully licensed and operational prior to September 29, 2025, so that there will be no disruption to the business operations during this changeover,” wrote Viridis Lab Director Michael LaFramboise. “The new company will be moving into the Michigan testing market with a fully qualified staff and will be prepared to hit the ground running as soon as it is licensed.”
When reached for further comment, LaFramboise deferred to the company’s attorney, who did not respond to a request for comment.
Assured Testing Lab allowed to re-open
The shutdown is the latest in a series of state actions against problematic testing labs.
The Massachusetts Cannabis Control Commission is allowing Assured Testing Laboratories to re-open after suspending its license on July 4.
From April 2024 through April 15, 2025, Assured Testing allegedly failed to report results for approximately 7,000 microbial tests, including 544 samples that were found to exceed the state’s total yeast and mold limit of 10,000 colony forming units per gram, according to the CCC.
After the shutdown, Assured Testing Lab sued the state on July 7. The Suffolk Superior Court denied the company a preliminary injunction on July 16. The company’s attorneys then negotiated a settlement with the state that would allow the lab to re-open.
Under the settlement, approved Aug. 14, the company’s current owner and CEO, Dimitrios Pelekoudas, PhD., was suspended for at least 12 months and will be replaced by an interim CEO. The lab was fined $300,000 that can be paid in three installments over 180 days.
Assured Testing Lab will also be on probation for 24 months, during which time the state will require additional reporting. The company must also hire an independent auditor to provide testing data and quarterly reports to the commission.
The license suspension will be lifted on Sept. 15, but it could be lifted sooner if the company is able to meet all of the conditions of the settlement.
Earlier this month, the Oklahoma Medical Marijuana Authority suspended Greenleaf Labs’ license and switched about 19,000 samples that were tested by Greenleaf Labs from passed to failed for potential contamination with yeast and mold beyond the state’s limit. As of Aug. 27, OMMA had not publicly announced any embargoes or recalls.
