On July 29, 2024, members of the Cannabis Impact Prevention Coalition and the Cannabis Industry Victims Seeking Justice group, as well as New York taxpayers, (collectively, “Petitioners”) filed a lawsuit against the New York State Office of Cannabis Management, among other regulators (collectively, the “NYS Cannabis Agencies”), challenging the legality of New York’s utilization of public funds for cannabis-related purposes.
In this action, Petitioners claim that New York State (the “State”) funds are being misappropriated to support the establishment and operation of Conditional Adult Use Retail Dispensaries (“CAURD”) in the State. Specifically, it is alleged that the NYS Cannabis Agencies have violated the State’s Finance Laws, as well as federal law, in disbursing State funds to lease dispensary locations for CAURD licensees, of which such licensees are obligated to pay back to the State. As a result, Petitioners have requested an injunction preventing the financial assistance of CAURD licensees, as well as declaring the expenditure of State funds to support the cannabis industry illegal and unconstitutional. Affidavits of service have not been filed to determine when the NYS Cannabis Agencies are required to respond to the Petitioners’ allegations.
The Wagoner Firm is closely monitoring this lawsuit and will provide updates as it progresses. In the meantime, we are available to discuss any questions or concerns you may have regarding this lawsuit, compliance issues, or any other cannabis-related issues.
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