Facts

The Center for Advanced Public Awareness Inc. sued Shambala Healing Center Inc.

PLAINTIFF'S CONTENTIONS: The Center claimed that Shambala failed to provide the requisite Proposition 65 warnings on marijuana intended for smoking that it produced, processed, marketed, offered to sell, sold, and/or distributed for sale. The Center contended that under Prop 65, marijuana smoke is listed as a chemical known to cause cancer.

DEFENDANT'S CONTENTIONS: Shambala denied plaintiff's claims.

Result

Pursuant to the settlement reached between the parties, Shambala agreed to either provide the requisite warnings in its stores or provide the warning labels on each of its products. Shambala also agreed to provide an internet website warning and a warning in its membership agreements. Further, Shambala agreed to pay $55,000 as a total settlement amount, $9,701.74 in civil penalties, $936.11 in costs, $34,660.50 in attorney fees, and $9,701.65 as an additional settlement payment.