Cannabis stocks slammed after FDA warning to Curaleaf for CBD claims

Cannabis stocks were mostly lower on Tuesday, led by Curaleaf Holdings, after the U.S. Food and Drug Administration sent a warning letter to the company for claiming CBD-based products could treat a range of serious diseases, including Alzheimer’s disease.

HIGHLIGHTS

• The move is the first against a multi-state operator and is expected to shake the entire sector.
• The FDA has told companies that they cannot add CBD to food or beverages, although it appears willing to tolerate it in topical products—as long as companies don’t make serious health claims.
• A Curaleaf spokesperson said the letter is currently under view by its legal counsel.

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