Massachusetts Cannabis Lab Sues State to Regain Suspended License Amid Contamination Controversy

A major cannabis testing laboratory in Massachusetts is taking legal action against the state’s Cannabis Control Commission (CCC) after its operating license was suspended earlier this month. Assured Testing Laboratory, based in Tyngsboro, claims the CCC violated its due process rights and took unlawful action that could destroy its business over what the company alleges is a “data-reporting disagreement.”

The dispute, now filed in Suffolk County Superior Court, could have major implications for regulatory oversight, lab accountability, and consumer safety in one of the country’s most tightly regulated cannabis markets.

Assured Testing Laboratory Challenges CCC’s Suspension Over Mold Testing Failures

The CCC issued a suspension order on June 30, effective July 4, citing Assured Testing’s abnormally low failure rates for contaminants such as yeast and mold. According to the CCC, over 17,000 samples tested by the lab resulted in only 10 recorded failures, representing a 0.05% fail rate—roughly 90 times lower than the state average of 4.5%.

This discrepancy prompted a deeper investigation, which allegedly uncovered that the lab identified 544 samples that exceeded the state’s contamination limits but failed to report them as required by law.

In its complaint, Assured Testing denies wrongdoing and argues that it had complied with all active regulations and orders at the time the tests were conducted. The lab is seeking to reinstate its license and stop the CCC from what it calls an unjustified shutdown of its business operations.

Lab CEO Claims Regulations Were Unclear and Recently Updated by the CCC

Dimitrios Pelekoudas, CEO of Assured Testing, pushed back on the CCC’s claims in a statement to the Boston Herald, saying that the agency’s regulations on mold and yeast testing were “so unclear” that they had to be rewritten and reissued, with updates taking effect only as of April 1, 2025.

“At all times, Assured Testing Laboratory complied with all active regulations and orders,” said Pelekoudas. “We did nothing wrong here, posed no threat to the public, and ensured that no contaminated products reached the market.”

Assured Testing also highlighted its significant role in the Massachusetts cannabis market, reporting that it tested 25% of the cannabis products sold in the state from April 2024 to April 2025.

Suspension Could Be Business-Ending as Lawsuit Highlights Regulatory Overreach

The company argues that the CCC’s actions are not only procedurally flawed but also devastating to its business. In court filings, Assured Testing stated that being forced to shut down “all over what is essentially a data-reporting disagreement” would force the lab out of business permanently.

The CCC’s suspension order allows Assured Testing 21 days to request a hearing, but the lab’s legal team is moving quickly to secure a court-ordered reversal, citing irreparable harm.

If the court sides with the CCC, it could signal increased enforcement against cannabis labs accused of misreporting data or giving clients favorable results—a long-standing concern within the cannabis testing ecosystem.

Broader Concerns About Cannabis Lab Integrity Resurface as Testing Scrutiny Intensifies

The controversy comes amid growing industry concern about inconsistent testing standards and alleged potency inflation, where labs are accused of reporting higher THC levels or overlooking contaminants to attract business from producers and retailers.

Massachusetts, like many states, has struggled to balance rigorous testing protocols with industry pressure to streamline product approval processes. The CCC’s move to suspend Assured Testing marks the first high-profile crackdown on a cannabis testing lab in the state.

Industry observers say this could be a turning point for how testing labs are monitored and held accountable.

Separate Legal Battle Blames Faulty Testing Equipment for Inaccurate Results

Assured Testing’s legal trouble doesn’t stop with the state. The lab is also one of 26 plaintiffs in a separate lawsuit filed in January, accusing a laboratory equipment manufacturer of selling faulty chromatography machines and other analytical devices that “consistently resulted in failed testing.”

According to court records, Assured Testing claims it could not have discovered the issues with the equipment until 2024, when lawsuits in other states began revealing similar technology flaws.

This lawsuit, which is still pending in Suffolk County Superior Court, could bolster Assured Testing’s defense against the CCC by suggesting that any irregularities in its data were the result of faulty instruments—not negligence or misconduct.

Fallout Could Have Statewide Impact on Cannabis Testing and Public Trust

With cannabis legalization expanding and the industry growing more sophisticated, regulators are under increasing pressure to ensure lab results are trustworthy and transparent. If Assured Testing’s license remains suspended, hundreds of producers and dispensaries across Massachusetts could be forced to seek alternative labs, possibly delaying product approvals and causing supply chain disruptions.

Moreover, this case could set a legal precedent for how cannabis testing disputes are handled in court, especially where regulations are vague or in flux.

Whether this is a justified regulatory enforcement or an overreach based on flawed data interpretation remains to be seen but one thing is clear: Massachusetts’ cannabis lab oversight just got a lot more complicated.