Three major cannabis firms linked to the production and distribution of a controversial cannabis-based sleep aid are shutting down operations in Colorado following a lawsuit settlement and fine. Nuka Enterprises LLC, Sima Sciences LLC, and Nuka Properties LLC collectively known as the makers of the 1906 line of products had been operating in the state since 2016. The state’s action underscores growing scrutiny on cannabis firms and potential liver damage risks tied to untested herbal additives.
Among the products produced by these cannabis firms was “Midnight Drops,” a cannabis-based and plant-based mixture marketed in pill form. Beginning in 2020, consumers started filing complaints about adverse health effects. By 2023, the Colorado Department of Revenue’s Marijuana Enforcement Division and the Department of Public Health and Environment issued public notices warning about possible liver damage linked to Corydalis, an herbal supplement included in “Midnight Drops” produced before March 1, 2022.
According to state notices, later versions of the product contained a Stephania extract with L-THP and also showed “elevated liver enzymes that may indicate acute liver damage.” Despite these warnings, the cannabis firms continued producing and selling “Midnight Drops” instead of immediately removing it from store shelves. Authorities allege the companies failed to conduct sufficient research on the two herbal extracts or to adequately inform retailers about potential liver damage risks.
The three cannabis firms agreed to cease operations in Colorado and pay a $400,000 penalty. The agreement allows the companies to resume operations only if they meet undisclosed conditions; penalties could rise to $1 million if the cannabis firms violate the agreement.
The case highlights a pivotal moment for the industry. As more consumers look to cannabis products for wellness, regulators are demanding that cannabis firms conduct thorough safety testing—especially where possible liver damage is concerned. Experts warn that even plant-based supplements combined with cannabis extracts can carry risks of liver damage, underscoring the importance of transparency and research.
For Colorado consumers, the settlement is a reminder to stay informed about ingredients in cannabis products. For cannabis firms, it signals a new era of accountability: ignoring health warnings such as potential liver damage could cost companies their reputations, operations, and millions in fines.
