3 Cannabis Companies Fined $400,000 and Forced Out of Colorado Market

19 September 2025

Three cannabis companies have been ordered to leave Colorado’s cannabis market after a state investigation linked one of their products to liver injuries. Attorney General Phil Weiser announced on September 19, 2025, that Nuka Enterprises, Sima Sciences, and Nuka Properties reached a settlement requiring them to cease operations and pay $400,000 in fines. The agreement could escalate to $1 million in penalties if the companies violate its terms.

The firms were behind Midnight Drops, a cannabis-based sleep aid sold under the 1906 brand. According to investigators, the companies were alerted as early as 2020 to consumer complaints about liver issues but continued to market the product. The capsules included cannabis along with corydalis and stephania extracts, both of which state officials later linked to liver injury or elevated liver enzymes.

Colorado’s Marijuana Enforcement Division and Department of Public Health and Environment issued a health advisory in 2023 warning consumers about risks tied to Midnight Drops. Despite this, the product remained available in some dispensaries, and the companies failed to conduct adequate research or notify retailers about the dangers.

Under the settlement, the companies may only return to Colorado if they meet undisclosed conditions set by regulators. In addition to the fine, they face further penalties if they breach the agreement.

• For patients and consumers, this case is a reminder that cannabis products marketed with health claims must meet safety standards.
• For businesses, it demonstrates the risks of inadequate testing and failure to respond to consumer complaints.