[[{“value”:”
New York’s adult-use cannabis market continues to be mired in controversy and new legal disputes despite topping $1bn in sales last year.
The Office of Cannabis Management (OCM) was hit with another lawsuit last week, challenging recent approvals that allow some dispensaries to operate within 1,000 feet of existing stores.
A group of four licensed cannabis retailers in New York filed the lawsuit in the New York Supreme Court, targeting the Cannabis Control Board (CCB) and Office of Cannabis Management (OCM) over waivers granted to at least six dispensaries, which the plaintiffs claim were issued without proper analysis or evidence.
The state’s buffer rule, established to prevent market saturation and promote stability for new businesses, is at the centre of the dispute. The lawsuit alleges that the CCB improperly waived location protections by citing ‘public convenience’ without conducting a thorough analysis or providing due process.
Meanwhile, the OCM is continuing to fight lawsuits on numerous fronts that are significantly hindering its ability to issue new licences.
Last week, the regulator approved a mere 31 new licences, despite pressure to address the backlog of applications.
Two competing lawsuits are currently underway, with one seeking to narrow licensing restrictions and the other, filed by established operators, aiming to halt the review of thousands of pending applications.
In December, the OCM was temporarily barred from processing thousands of pending license applications, including some 340 Conditional Adult Use Retail Dispensary (CAURD) applicants.
It relates to a lawsuit filed in May by four companies – Organic Blooms LLC, Niagra Nugget LLC, Blackmark LLC, and Windward Management LLC, which accused the OCM of overstepping its authority by waiving key requirements for early CAURD applicants.
A state judge is now expected to revise an existing injunction, narrowing its scope to affect only applications still under review. This decision would enable hundreds of cannabis businesses with preliminary approval to move forward, despite the broader legal wrangling. The revised injunction follows a hearing earlier this week that focused on defining which cannabis businesses qualify as ‘licensed.’
Separately, established cannabis operators are seeking to halt the review of approximately 5,000 applications submitted in December 2023. These operators argue that issuing such a large number of new licenses could overwhelm the market and devalue existing licenses.
“}]] New York’s adult-use cannabis market continues to be mired in controversy and new legal disputes despite topping $1bn in sales last year. The Office of Cannabis Management (OCM) was hit Read More
