Massachusetts Cannabis Testing Lab to Reopen After $300,000 Fine and Lengthy Suspension

A cannabis testing laboratory at the center of the largest product recall in Massachusetts history has reached a settlement with regulators and will reopen next month.

Assured Testing Laboratories, which once tested roughly 25% of all cannabis in the state, will resume operations on September 15, 2025, after agreeing to pay a $300,000 fine and submit to strict oversight by the Massachusetts Cannabis Control Commission (CCC).

The decision comes after weeks of legal wrangling, public scrutiny, and industry-wide concern over the credibility of cannabis testing across the United States.

State Regulators Penalize Assured Following Unprecedented Product Recall

The CCC suspended Assured’s license on July 4, 2025, after uncovering troubling discrepancies in testing data. The agency found that Assured had an unusually low fail rate for yeast and mold—0.05% compared to the statewide average of 4.5%.

That glaring disparity triggered a recall of 7,605 cannabis packages, the largest recall in state history. While most were removed from circulation, the CCC reported that 509 packages remained in the supply chain at the time of suspension.

With Massachusetts’ legal cannabis market generating $1.6 billion in sales in 2024, the incident cast a shadow over consumer safety and product integrity in the state.

Settlement Terms: Fine, CEO Suspension, and Independent Auditing

Under the settlement approved by the CCC, Assured Testing Laboratories will operate under a strict two-year probationary framework. Key terms include:

• $300,000 fine, paid in $100,000 installments every two months.
  
• One-year suspension of CEO and minority owner, Dimitrios Pelekoudas.
  
• Requirement to contract with an independent auditor to review all raw testing data.
  
• Appointment of a new quality control manager.
  
• Mandatory biweekly reporting of testing results to the CCC.
  

These measures, regulators said, are designed to restore integrity to the state’s testing framework while allowing Assured to continue operations under close supervision.

Lab Accused of Falsifying Data and Engaging in “Dry-Labbing”

According to CCC findings, Assured Testing was accused of falsifying results and engaging in “dry-labbing” reporting test outcomes without actually performing the analyses.

The investigation revealed that while Assured reported just 10 failed samples out of 17,565, internal data showed that 544 samples had actually exceeded the state’s 10,000 CFU-per-gram yeast and mold limit.

Regulators also alleged that Assured reported cannabis samples as having passed pesticide and mycotoxin testing before completing those tests.

The settlement explicitly cites these practices as violations of state law and professional standards.

Legal Battle: Assured Sues State Regulators Before Settlement

After the suspension in July, Assured filed suit in Suffolk County Superior Court, seeking to overturn the CCC’s decision and restore its operating license.

The lawsuit escalated tensions between the lab and regulators, raising questions about how far state agencies could go in cracking down on misconduct within the cannabis testing industry.

Thursday’s agreement resolves the dispute, allowing the lab to return to operations while conceding to significant penalties and oversight.

First Major Crackdown on a Cannabis Testing Lab in Massachusetts

The Assured case represents the first major enforcement action against a cannabis testing facility in Massachusetts. For years, regulators nationwide have faced criticism for failing to hold labs accountable, despite widespread allegations of misconduct.

Testing labs have long been accused of inflating THC potency scores and passing contaminated product to satisfy clients and secure market share. Critics say the lack of meaningful oversight has eroded consumer trust and created unfair advantages for labs willing to cut corners.

The CCC’s aggressive action against Assured signals a turning point in Massachusetts’ regulatory approach, potentially setting a precedent for other states to follow.

Industry Reaction: Support for Stronger Oversight, But Fine Questioned

Reaction to the settlement has been mixed.

Jeff Rawson, president of the Institute of Cannabis Science, called the $300,000 penalty “substantial” but noted that the fine is likely smaller than the revenue the lab gained through fraudulent testing.

“$300K is smaller than the revenue they gained from fraudulently reported testing, so it might feel a little unsatisfying at first,” Rawson said. “But they now face the challenge of rebuilding a client base from zero under constant oversight.”

Rawson also noted that the settlement substantiates allegations made in a separate lawsuit filed by competitor MCR Labs, which accused Assured of unethical practices.

Statement from Assured: Lab Pledges to Restore Trust

In a statement to MJBizDaily, a spokesperson for Assured said the lab was “pleased to have reached an agreement” and eager to return to operations.

“While we disagree with aspects of how we got here, we are eager to return to what we do best: delivering scientific, evidence-backed testing with industry leading cannabis expertise,” the statement said.

The lab confirmed that CEO Dimitrios Pelekoudas will step aside, with a new executive team taking over leadership as part of the agreement.

Statement from Regulators: Commitment to Consumer Safety

The CCC emphasized its role in protecting consumers and maintaining product safety in the state’s $1.6 billion industry.

When asked about how cultivators who previously relied on Assured have managed their testing needs, the CCC declined to comment on individual business decisions.

National Context: Cannabis Testing Labs Under Increased Scrutiny

The Massachusetts case is part of a broader national reckoning over cannabis testing integrity. Across the United States, regulators and watchdogs have raised alarms about lab shopping, inflated potency results, and underreported contamination.

Consumers increasingly depend on lab certificates to verify safety and potency, yet inconsistent oversight has created opportunities for manipulation.

By forcing Assured to overhaul its operations under independent monitoring, Massachusetts regulators hope to send a message that laboratory misconduct will not be tolerated in the state’s tightly regulated market.

Can Assured Rebuild Its Reputation?

The settlement allows Assured Testing Laboratories to reopen and resume business, but the path forward will not be easy.

The lab must not only comply with strict regulatory oversight but also work to rebuild trust among cultivators, retailers, and consumers who may question the accuracy of past results.

With the Massachusetts cannabis industry continuing to grow rapidly, the demand for reliable and transparent testing has never been greater. Whether Assured can regain its place as a major testing player—or if cultivators will seek more reputable alternatives—remains to be seen.

A Watershed Moment for Cannabis Testing Oversight

The reopening of Assured Testing Laboratories following a $300,000 fine and strict probation marks a watershed moment for cannabis regulation in Massachusetts.

As the first significant enforcement case against a testing lab in the state, it highlights the high stakes of laboratory integrity in ensuring consumer safety and industry credibility.

For Assured, the next two years will be a test of compliance, transparency, and the ability to rebuild reputation in an industry where trust is everything.