Massachusetts Cannabis Testing Lab Accused of Wrongdoing Returns From Suspension
The first cannabis testing laboratory in Massachusetts to be suspended for alleged fraud has reopened after reaching a settlement with regulators, marking the state’s first attempt by a lab to recover its reputation after scandal.
Tyngsboro-based Assured Testing Laboratories, which once handled up to 25% of the state’s $1.6 billion cannabis market, was suspended on July 1 following allegations of manipulated test results. The lab reopened Sept. 15 under strict new conditions set by the Massachusetts Cannabis Control Commission (CCC).
The settlement avoided a prolonged court battle but included a $300,000 fine, suspension of the company’s CEO, and new oversight requirements. Interim CEO Tom Moore told MJBizDaily the added scrutiny could ultimately reassure clients.
“It’s a strange position to be in, obviously,” Moore said. “We were the biggest lab in the state. Now, with all these extra standards, I can say with confidence we’ll be the standard-bearer.”
Allegations of Inflated Potency and Concealed Failures
The CCC’s investigation accused Assured of reporting test results far outside normal patterns. Between April 2024 and April 2025, Assured reported a yeast and mold fail rate 90 times lower than the statewide average of 4.5%. The lab failed only 10 out of 17,565 samples during that period despite Massachusetts having some of the nation’s strictest contamination thresholds.
Other alleged violations included:
Not reporting failed samples to regulators.
Certifying cannabis batches as passing without completing required tests.
Retesting failed samples in ways the CCC considered noncompliant.
In its suspension order, the CCC accused Assured of an “intentional effort to conceal failing results” in order to benefit clients.
Settlement Terms and Oversight Measures
Assured sued to regain its license but dropped litigation as part of a stipulated agreement with regulators. The lab did not admit wrongdoing but agreed to a series of measures, including:
Suspending CEO and minority owner Dimitrios Pelekoudas for one year.
Hiring a quality control manager.
Contracting an independent auditor to review raw testing data, which must be reported biweekly to the CCC.
Updating standard operating procedures (SOPs) to match new state requirements.
Moore denied accusations of “dry labbing” – certifying results without performing tests – and insisted all samples were properly analyzed.
“I can tell you 100% of our samples were tested,” he said. “We have the documentation. If we were truly a health and safety threat, they would have shut us down long ago.”
Industry Impact and Reputation Rebuilding
Assured’s case is part of a broader national trend, with cannabis testing labs in Arizona, California, and New York facing similar enforcement actions amid accusations of inflated THC potency and overlooked contamination.
But Massachusetts may be the first state where a suspended lab has been allowed to resume operations. Whether Assured can rebuild trust remains uncertain.
Some former customers have already resumed testing with the lab, Moore said. Still, industry experts warn the company faces a long road.
“With Assured operating under a stipulated agreement that exposes them to enhanced scrutiny, how will they convince clients to return?” said Jeff Rawson, president of the Massachusetts-based Institute of Cannabis Science. He has been a vocal critic of Pelekoudas, saying the former CEO appeared “unrepentant” in past interviews.
Regulators Signal Stricter Oversight Going Forward
The reopening comes as the CCC signals tougher rules across the testing sector. Recently reinstated Chair Shannon O’Brien, who returned to her post following a contentious removal and legal battle, said at a public meeting this week that lab oversight is a top priority.
O’Brien indicated the state will require standardized testing methodologies across all licensed labs to eliminate inconsistencies and ensure reliable results.
“The lab problem worsened in her absence,” observers said. Now, regulators are determined to strengthen oversight, even as they allow Assured a second chance.
A Lab Under the Microscope
For Assured Testing Laboratories, the settlement provides a path forward but also guarantees constant monitoring. Moore insists the company can turn the crisis into an advantage by demonstrating reliability under stricter rules.
Whether customers agree and whether regulators will allow the company to operate without further disruption remains to be seen.
