After a more than five-month process, a settlement has been reached between the South Dakota Department of Health (DOH) and 605 Cannabis, one of South Dakota’s largest cannabis companies.
The situation began in February when the Department of Health conducted an inspection and found nine serious violations, leading to the immediate suspension of 605’s manufacturing and cultivation licenses.
Following this, 605 Cannabis issued a voluntary recall of certain products at the request of the South Dakota Medical Cannabis Program due to alleged violations, including failure to test product, mislabeling, contamination, lack of inventory tracking, and unlicensed edible products under the brand Badlands.
In response, 605 Cannabis filed a lawsuit against the DOH, claiming overreach and improper issuance of violations that caused damages exceeding $1 million. The company also sought to refute the DOH’s claims. Throughout the process, 605 Cannabis maintained that they sought guidance from the DOH and followed their instructions.
Recently, the DOH lifted the recall and stated that they had never believed their products posed any health or safety risk to patients. 605 Cannabis expressed eagerness to resume providing safe and quality products to medical cannabis patients after the administrative process was settled.