Judge tosses Arkansas marijuana dispensary applicant’s suit over scoring

March 24, 2023 · MJ Biz Daily

A federal judge in Arkansas dismissed several claims by a medical marijuana dispensary applicant, including tortious interference and racial discrimination during the state’s license-evaluation process.

According to Law360, U.S. District Judge James Moody Jr. ruled that tortious interference doesn’t apply to the claim made by Absolute Essence because it’s still an applicant and doesn’t have any property or business rights.

Absolute Essence’s suit in February 2022 alleged that the company that state regulators hired to score applications, Public Consulting Group Holdings and affiliate Veracious Solutions, was discriminatory and chose to deny the state’s limited number of retail licenses to minority-owned business applications.

The licensing process was halted as a result of the lawsuit, which was sent to federal court last April.

That month, Boston-based Public Consulting Group moved to have the complaints against it dismissed because Absolute Essence didn’t exist until two years after the application was scored.

In May, Veracious Compliance Solutions of Henderson, Nevada, moved to have the case dismissed because it didn’t have final say on the process, plus state regulators had to approve the application scores.

The judge agreed, noting the discrimination claims were dismissed because Absolute Essence has neither property nor a contract, which is required for a claim under the Arkansas Civil Rights Act.

According to Law360, the judge also dismissed:

  • An additional claim of fraud.
  • A claim under the Equal Protection Clause.
  • A civil conspiracy claim.

(Full Story)

In categories:Dispensaries Legal
Tags:
Next Post

New York’s Long Island opts out of marijuana retail, limiting options for store operators

When New York regulators announced plans to double recreational marijuana retail licenses to 300 for social equity applicants, local cannabis operators and other industry advocates applauded the news. But behind the scenes, concerns were mounting over the challenge of finding affordable cannabis…
Read
Previous Post

New York Gov. Proposes Crackdown on Unlawful Cannabis Shops

New York Gov. Kathy Hochul (D) is proposing legislation to crack down on unlicensed cannabis storefronts in the state, including fines of up to $10,000 per day for unlawful operations. The legislation would also give additional enforcement power to the Office of…
Read
Random Post

The Canadian Government Has Collected Over $1 Billion in Cannabis Taxes Since Legalization Began in 2018

Since recreational use of cannabis became legal in Canada in 2018, the federal government of that country has imposed a total duty on cannabis products of over 1 billion Canadian dollars ($740 million). Executives expect that the government would ease the…
Read
Random Post

Missouri Cannabis Rollout Under Fire for Exclusion of Some Incarceration Data

The agency examined incarceration rates over the past 20 years, which ignored data from the 1980s. The United States’ War on Drugs spans decades, but Missouri’s licensing process failed to consider much of the impact the policy had on disadvantaged communities,…
Read
Random Post

Would Let Individuals with Drug Convictions Obtain Hemp Licenses

A bipartisan bill introduced in the House last week would allow individuals with drug convictions to obtain a hemp license. The 2018 Farm Bill, which expanded the federal government’s hemp legalization policies, prohibits people with a felony drug conviction within the…
Read
Random Post

Ohioans Arrested For Marijuana Must Be Involved In Talks About Changing Legalization Law, Not Just ‘Anti-Cannabis’ Republicans, Lawmaker Says

An Ohio Democratic lawmaker wants to see people who’ve been criminalized over marijuana, as well as those with industry experience, involved in any efforts to amend the state’s voter-approved legalization law, arguing that it shouldn’t be left up to “anti-cannabis” legislators…
Read