New York cannabis officials are hitting a major testing lab with big fines and a possible ban after claims of sloppy work led to a huge product recall over pesticide fears. This comes as legal weed sales boom past $1 billion this year, raising questions about safety in a fast-growing market.
Lab Shuts Down Amid Probe
State regulators launched a deep dive into Lexachrom Labs on Long Island after spotting red flags in their testing results. The lab closed its doors on June 1 and gave up its permit during an audit. Officials say this mess caused one of the biggest recalls in New York’s young cannabis market.
The Office of Cannabis Management is pushing for over $2 million in fines and a ban that could last up to three years. They point to serious slip-ups that put public health at risk, like faulty data handling and slow reporting of issues.
This isn’t just paperwork problems. The lab tested products from big brands, and some ended up contaminated with pesticides. That forced a quarantine of items sold in stores across the state.
Investigators found the lab failed to keep accurate records, which let unsafe cannabis slip through to buyers.
Pesticide Scare Sparks Recall
The trouble started when tests showed pesticides in cannabis that Lexachrom had cleared as safe. This led to a recall in July, pulling products from shelves to avoid health risks.
Pesticides in weed can cause breathing issues or worse over time, experts warn. Regulators acted fast to quarantine affected batches, but some may have already reached consumers.
One farm, East End Flower Farm, saw its goods recalled after the contamination came to light. The state says Lexachrom’s bad testing played a key role.
This recall highlights gaps in New York’s cannabis rules. While sales hit $1.06 billion so far in 2025, up from last year, safety checks are under fire.
Sales Boom Despite Safety Woes
Legal cannabis in New York is on a roll, with retail sales topping $1 billion this year and possibly reaching $2 billion by year’s end. That’s a big jump, driven by more stores and demand.
But growth brings challenges. A 2023 investigation by Syracuse.com found contamination risks at farms, labs, and shops. It called out failures that expose buyers to unsafe products.
Regulators are stepping up. They’ve proposed new rules on packaging and ads to protect users. Still, cases like Lexachrom show the industry needs tighter oversight.
Here’s how sales have grown:
- 2023: Early market struggles with limited supply.
- 2024: Sales picked up as more licenses rolled out.
- 2025: Over $1 billion already, with three months left.
This boom means more eyes on testing labs to keep things clean.
Broader Push for Cleaner Industry
New York’s move against Lexachrom is part of a wider crackdown. The state has probed other testing issues, aiming to weed out bad actors.
Officials say labs must follow strict standards to ensure cannabis is free of harmful stuff like mold or chemicals. Lexachrom’s case could set an example, pushing others to shape up.
The lab worked with brands like Stiiizy, whose products ended up in the recall spotlight. This ties into national concerns about testing in states with legal weed.
A February 2025 report from Green Market noted regulators focusing on growth while fixing safety holes. They’ve come far, but incidents like this remind everyone of the stakes.
Buyers now wonder if their legal weed is truly safe. Regulators promise more audits to build trust.