A Vermont hemp processor is suing a Maryland grower, accusing the company of lying about the plants it sold being pesticide-free.
The federal lawsuit filed by Newton Hill Labs, based in Milton, was filed Tuesday. It alleges Bay Water Greens and Baywater Farms of sold Newton Labs 5,000 pounds of biomass in October 2019 that contained elevated levels of two pesticides, Azoxystrobin and Propiconazole.
The test results caused buyers to cancel orders for CBD and terpenes from Newton Hill Labs, “resulting in substantial lost profits.”
Newton Hill Labs argues that it lost more than $400,000 in profits from the biomass, plus another $500,000 in lost profit on terpenes.
The plaintiff told the court it is “left with hundres of thousands of dollars’ worth of unsellable terpenes.”
The lawsuit also names Kush Tourism, a Washington-based company that Newton Labs said brokered the deal. Newton Labs said it paid $132,000 for the hemp plants.
“Newton Hill informed Kush that its biomass needed to be pesticide and herbicide free,” the lawsuit alleges. “Kush understood and promised to procure such biomass.”
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