Charlotte’s Web faces labeling lawsuit

BOULDER — Attorneys in California filed a class action lawsuit this week that alleges Boulder-based CBD product maker Charlotte’s Web (TSX:CWEB) misled customers by labeling its products as “dietary supplements.”

In a statement, Charlotte’s Web representatives deny the allegations and claim they haven’t yet been served with the suit. 

The suit, filed in U.S. District Court for the Northern District of California by lawyers with Kohn, Swift & Graf PC, alleges Charlotte’s Web engaged in “multiple and prominent systematic mislabeling of the products form a pattern of unlawful and unfair business practices that harms the public.”

Attorneys with the firm could not be reached for comment Monday evening.

The named plaintiff in the class action, California resident Michele McCarthy, bought $254.77 in Charlotte’s Web products earlier this year, according to the complaint. She “would not have purchased the products, or would have not paid as much for the products, had they known the truth about the mislabeled and falsely advertised products,” the complaint said.

The U.S. Food and Drug Administration issued new guidance for CBD sales last week that specified the it is “currently illegal to market CBD by adding it to a food or labeling it as a dietary supplement.” Letters were sent last week to 15 CBD producers warning about potential issues with mislabeling. Charlotte’s Web was not among those companies. 

This week the Boulder firm became aware “of a yet-to-be served class-action suit having been filed in the Northern District of California that alleges that the company’s products are mislabeled as dietary supplements,” according to a Charlotte’s Web statement. “The company believes that its products are accurately labeled and that the claims are without merit. The company intends to vigorously defend itself against any such suits.” 

The class action complaint demands unspecified damages.

BOULDER — Attorneys in California filed a class action lawsuit this week that alleges Boulder-based CBD product maker Charlotte’s Web (TSX:CWEB) misled customers by labeling its products as “dietary supplements.”

In a statement, Charlotte’s Web representatives deny the allegations and claim they haven’t yet been served with the suit. 

The suit, filed in U.S. District Court for the Northern District of California by lawyers with Kohn, Swift & Graf PC, alleges Charlotte’s Web engaged in “multiple and prominent systematic mislabeling of the products form a pattern of unlawful and unfair business practices that harms the public.”

Attorneys with the firm could not be reached for comment Monday evening.

The named plaintiff in the class action, California resident Michele McCarthy, bought $254.77 in Charlotte’s Web products earlier this year, according to the complaint. She “would not have purchased the products, or would have not paid as much for the products, had they known the truth about the mislabeled and falsely advertised products,” the complaint said.

The U.S. Food and Drug Administration issued new guidance for CBD sales last week that specified the it is “currently illegal to market CBD by adding it to a food or labeling it as a dietary supplement.” Letters were sent last week to 15 CBD producers warning about potential issues with mislabeling. Charlotte’s Web was not among those companies. 

This week the Boulder firm became aware “of a yet-to-be served class-action suit having been filed in the Northern District of California that alleges that the company’s products are mislabeled as dietary supplements,”…