Colorado Attorney General Phil Weiser said his state has reached a settlement with the manufacturers and distributors of the 1906 brand of cannabis products, along with their co-founder, Peter Barsoom, after an investigation found the companies failed to disclose health risks associated with the products to consumers and misrepresented the products’ health benefits.
Under the settlement, the companies—Nuka Enterprises LLC, Sima Sciences LLC, and Nuka Properties LLC—will cease Colorado operations and pay $400,000 in fines to the state. If certain conditions are met, the companies may be allowed to resume operations in the future. If the company violates the terms of the settlement, they are required to pay an additional $600,000 to the state.
“Colorado’s cannabis regulations are the nationwide gold standard for protecting consumers, and the companies in this case broke the law by failing to disclose potential health risks from their products,” said Weiser. “With this action, I am holding the companies and one of its co-founders accountable to ensure they face consequences for their deceptive business practices. I will continue to hold accountable those who evade Colorado’s cannabis and consumer protection laws.”
From 2016-2024, Sima Sciences sold edible marijuana products called “Drops” in Colorado. Beginning in 2020, the company began to receive complaints about a product called “Midnight Drops,” which some customers said were causing liver problems. The health issues people were experiencing stood in stark contrast to the claims made about the health benefits of the drops, which were marketed to aid sleep.
After receiving reports of adverse health effects associated with the products, the Colorado Department of Revenue’s Marijuana Enforcement Division and the Colorado Department of Public Health and Environment issued public notices to raise awareness for consumers.
The attorney general’s office’s investigation found that the company was aware the products might be causing health problems for consumers as early as 2020, but continued to manufacture and distribute them. Investigators also learned the companies did not perform adequate research on the herbal extracts Corydalis and Stephania, which their products contained at various times, failed to properly notify retailers of the problems so the products could be removed from shelves, and misrepresented the products’ health benefits.
1906 last week announced 1906 Spirits, a "neutral" cannabis spirit.
