Three companies linked to the production and distribution of a cannabis-based sleep aid will cease operations in Colorado following a settlement and fine that resolve a lawsuit filed by the state. 

The companies – Nuka Enterprises LLC, Sima Sciences LLC, and Nuka Properties LLC – comprise the firms which manufactured and distributed the 1906 line of products in Colorado beginning in 2016. 

Among those products, “Midnight Drops,” a cannabis-based and plant-based mixture in pill form. 

The makers of the product began receiving complaints from consumers in 2020, according to a Colorado Attorney General’s Office press release announcing the settlement. 

The Colorado Department of Revenue’s (DOR) Marijuana Enforcement Division (MED) and the Colorado Department of Public Health and Environment (CDPHE) notified consumers of the reported health issues in 2023. That notice cited potential side effects of Corydalis, an herbal supplement, in “Midnight Drops” produced prior to March 1, 2022. Despite limited research, the state agencies indicated the Corydalis rhizome extract may have some connection with liver injury.

“Midnight Drops” produced after March 1, 2022 also came with “elevated liver enzymes that may indicate acute liver injury,” the state notice advised. That product presumably contained the Stephania extract containing L-THP, according to the notice.

The companies agreed to stop production of the “Midnight Drops” and remove existing product from the marketplace, according to the state notice. 

However, the product was never removed from the shelves and the companies continued to make and sell “Midnight Drops,” according to the attorney general’s office. That office also claimed the companies failed to perform adequate research on the two herbal extracts, nor did they supply sufficient communication to retailers about the reported problems with the product.

Last week, the companies settled the lawsuit filed by the state attorney general’s office. The 1906 companies agreed to pay a $400,000 penalty in addition to ceasing operations in Colorado. The agreement allows the companies to resume operations if certain conditions are met. The press release did not specify the nature of the conditions or how long they must be adhered to. 

The agreement also permits the more fines against the companies if they violates the terms of the agreement. In total, the penalties could reach $1 million.