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Elixinol Wins Dismissal Of Class-action Lawsuit Alleging CBD Products Are Illegal

Cannabidiol or CBD producer Elixinol LLC said that it has won dismissal of a class action lawsuit that alleged the company's products were illegal to be sold under federal law.

The plaintiffs in the class-action suit against Elixinol in the U.S. District Court for the Northern District of California filed a notice of voluntary dismissal in early May. The notice was filed without prejudice and each party will bear its own costs.

The lawsuit was filed earlier in December 2019, alleging that Elixinol's products such as CBD capsules and tinctures are illegal as the U.S. Food and Drug Administration or FDA has deemed all hemp-derived CBD products illegal.

However, Elixinol's attorneys had argued that by the FDA's own admission, its position regarding CBD and CBD products remains in a "state of flux".

As there is no interim or final rule establishing a regulatory framework, the plaintiff's complaint relies on an unfounded "illegality" premise that has no support in the law, Elixinol's attorneys said.

Further, the attorneys noted that while the FDA has issued warning letters to a limited number of companies, these were "informal and advisory" in nature and the agency has not shut down a single CBD company, pulled a single CBD product off the shelves, or taken single further action.

In early May, the plaintiffs filed a voluntary notice of dismissal, dropping all claims against Elixinol.

Elixinol was represented by the law firm Frost Brown Todd LLC in the lawsuit.

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