Shares of marijuana stocks were lower on Tuesday after the Food and Drug Administration (FDA) issued a warning letter to Curaleaf Holdings for claiming that CBD-based products could treat a range of serious diseases.
The letter read that Curaleaf Holdings is “illegally selling unapproved products containing cannabidiol (CBD) online with unsubstantiated claims that the products treat cancer, Alzheimer’s disease, opioid withdrawal, pain and pet anxiety, among other conditions or diseases.”
The FDA has requested that the company respond within 15 working days on how it plans to address the violations in question.
The FDA wrote, “Failure to correct the violations promptly may result in legal action, including product seizure and injunction.”
A Curaleaf spokesperson said the letter is currently under view by its legal counsel.
“We can reaffirm that nothing in the letter raises any issues concerning the safety of any Curaleaf product,” said a company spokesperson. “Curaleaf products are all derived from hemp and meet the requirements of the Farm bill.”
