cbdMD, Inc. Announces Order by Court Staying California Litigation
cbdMD, Inc. (NYSE American: YCBD) has announced that a California class action lawsuit against the company is temporarily stayed. This ruling comes as the judge responded to cbdMD's motion while awaiting the U.S. Food and Drug Administration's guidelines or potential legislation regarding CBD product definitions and marketing. The lawsuit, filed in December 2019, accused cbdMD and others of violating several California laws. The stay closes the case administratively, with parties required to submit status updates every 90 days, starting June 2021.
- Class action lawsuit against cbdMD is stayed, reducing immediate legal risks.
- Opportunity to align product marketing with forthcoming FDA regulations.
- Lawsuit still poses uncertainty regarding regulatory compliance.
- Ongoing litigation could distract from business operations.
cbdMD, Inc. (NYSE American: YCBD, YCBDpA), one of the nation’s leading and most highly trusted and recognized cannabidiol (CBD) brands, announced today that the judge in the California class action lawsuit in which cbdMD, Inc. was named a defendant has granted its motion and stayed the action until the U.S. Food and Drug Administration completes its rulemaking and/or Congress passes legislation regarding the definitions, marketing, and labeling of CBD products. During the stay, the case is administratively closed.
As previously reported by cbdMD, Inc., in December 2019 plaintiffs filed a purported collective and class action lawsuit in the United States District Court for the Central District of California against cbdMD, Inc. and certain of our competitors alleging violations of the California’s Unfair Competition Law, California’s False Advertising Law and California’s Consumer Legal Remedies Act, as well as claims for breach of express warranties, breach of implied warranty of merchantability and declaratory relief. The complaint was brought as a nationwide “collective action,” and, alternatively, as a “class action” under the laws of the State of California. The Court’s ruling was in response to cbdMD, Inc.’s motion for dismissal and or stay filed in April 2020. While the litigation is stayed, the parties are directed to file a joint status report every 90 days, beginning on June 1, 2021.
About cbdMD, Inc.
cbdMD, Inc. is one of the leading, most highly trusted, and most recognized cannabidiol (CBD) brands, whose current products include CBD tinctures, CBD capsules, CBD gummies, CBD topicals, CBD bath bombs and CBD pet products. To learn more about cbdMD and our comprehensive line of over 130 SKUs of U.S. produced, Non-THC1 CBD products, please visit www.cbdMD.com, follow cbdMD on Instagram and Facebook, or visit one of the 6,000 retail outlets that carry cbdMD and Paw CBD products.
1 Non-THC is defined as below the level of detection using validated scientific analytical tools.
Forward-Looking Statements
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and ''proposes.'' These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2020 as filed with the Securities and Exchange Commission (the "SEC") on December 22, 2020, Item 1A. Risk Factors, contained in our Quarterly Report on Form 10-Q for the period ended December 31, 2020 as filed with the SEC on February 9, 2021 and our other filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of cbdMD, Inc. and are difficult to predict. cbdMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.
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