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Class Action Lawsuit Claims ‘Cartel’ Manipulates Missouri Cannabis Industry 

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Class Action Lawsuit Claims ‘Cartel’ Manipulates Missouri Cannabis Industry 

A class-action lawsuit filed in Missouri alleges that a “cartel” owns, controls or manages an unlawfully high portion of the state’s dispensary licenses and uses that market power to manipulate the market for its own benefit.

The lawsuit by licensed cannabis growers CPC of Missouri-Smithville, LLC and GF Saint Mary LLC alleges that Good Day Farm and a network of companies and investors conspired to invest in limited liability companies that then obtained additional cannabis industry licenses that are actually owned, managed or controlled by Good Day Farm.

Missouri there is a 10% licensing cap written into the adult-use cannabis law, but plaintiffs allege the so-called cartel operates under five different brand names and operates 61 dispensaries in total. The lawsuit alleges that Good Day Farms has 21 distribution licenses and is working with CODES, which operates 20 dispensaries; Greenlight, which operates 10 dispensaries; Fresh Karma, which operates six dispensaries; and 3Fifteen Primo, which operates four dispensaries.

The lawsuit alleges that the companies buy cannabis from unrelated firms at artificially low prices, but their stock from companies they are affiliated with and shut down independently manufactured products from their dispensaries unless the companies agree to their demands.

In a statement, Bob Hoffman, one of the lead lawyers for the lawsuit, said the companies’ actions are “suppressing competition in the wholesale cannabis market and enriching themselves with illegal profits through an unconstitutional and clandestine business conspiracy.”

“Missouri’s growers and producers have suffered under this scheme for too long – many of them know something is wrong, but don’t understand the extent of the Cartel’s market manipulation,” Hoffman said in a press release. “We filed this lawsuit to restore the fair and competitive marketplace that Missourians voted for when they legalized recreational cannabis in 2022.”

The lawsuit names 50 businesses and individuals as accomplices.

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Kansas Governor Candidate Pushes Cannabis Legalization Platform

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Kansas Governor Candidate Pushes Cannabis Legalization Platform

The Democratic front-runner for governor of Kansas is calling for the legalization of medical and adult cannabis in the state. In one video posted on Facebook from the parking lot of a dispensary in Missouri — just across the state line from her Johnson County home, state Sen. Cindy Holscher noted that the place was “full of Kansas license plates.”

“That’s a lot of Kansas tax dollars going straight into Missouri’s pocket. Most Kansas voters think marijuana should be legal in our state, but because it’s not Kansas, we buy it out of state and we miss the opportunity to raise more money for schools and public services.” — Holscher in a video posted to Facebook

Holscher noted that last year Missouri collected $255 million in tax dollars from cannabis sales in the state.

“This is real money that can make a big difference for Kansans,” Holscher said in the video. “Legalization means we will build an industry in Kansas of farmers and small businesses and keep our tax dollars in the state to benefit our schools.”

Holscher added that legalizing cannabis is “common sense” and that adults should be allowed to consume cannabis “safely and responsibly”.

or last survey by Change Research, commissioned by Civic Clarity, which operates the Capitol Bee news entity, found Holscher with 37% support among poll respondents, while Johnson County state Sen. Ethan Corson received 10% support and Overland Park Mayor Curt Skoog at 7%.

or Kansas Speaks Poll published in February found that 70% of Kansans support the legalization of medical cannabis, while 60% support adult-use reforms.

Ganjapreneur: Providing everyday knowledge since 2014, the leading digital business magazine for cannabis industry professionals. to join our community of over 40,000 cannabis entrepreneurs.

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Cannabis Cultivation Workers at Ascend Wellness Strike In Illinois Over Unfair Labor Practices

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Cannabis Cultivation Workers at Ascend Wellness Strike In Illinois Over Unfair Labor Practices

More than 300 Ascend Wellness employees at the company’s cultivation site in Barry, Illinois, went on strike last week, alleging unfair labor practices. WGEM reports.

“We have filed charges against the company for violations of the National Labor Relations Act. They have failed to bargain in good faith with the union by refusing to bargain on key and mandatory bargaining points, they have fired one of our bargaining committee members during negotiations, we also have a ULP for this and we are determined to bring forward more ULP workers. — Kyle Bollinger, Vice President of Teamsters Local 916, in the report

Workers walked off the job last Thursday, saying the company refused to negotiate a fair contract for more than a year. According to the report, many of them went outside the building after leaving.

Due to the size of the facility and the number of workers involved, the strike could cause major disruptions to the state’s adult cannabis supply chain.

Matthew McKenna, Vice President of Public Affairs at Ascend Wellness Holdings, told WGEM in a statement:

“We can confirm that there is a work stoppage at our cultivation facility in Barry, Illinois, which remains open and continues to operate. Ascend Wellness Holdings values and respects the employees at our Barry facility and has bargained in good faith throughout this process. Our last, best and final offer includes a strong economic package and remains on the table while the union was not disappointed with the proposal to proceed with the vote. to ask the union to allow a ratification vote. We remain committed to reaching a fair settlement.

Ganjapreneur: Providing everyday knowledge since 2014, the leading digital business magazine for cannabis industry professionals. to join our community of over 40,000 cannabis entrepreneurs.

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New York Lawmakers Pass Bill to Prevent Inversion of Illicit Cannabis into Legal Market 

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New York Lawmakers Pass Bill to Prevent Inversion of Illicit Cannabis into Legal Market 

or bill The effort to prevent the diversion of illegal cannabis products into New York’s regulated market has been approved by both the House and Senate, moving it to Gov. Kathy Hochul (D) for final approval.

The legislation defines “illegal cannabis” as any cannabis product on which taxes have not been paid, or proceeds from unlicensed individuals or entities. The bill prohibits the practice of subversion by licensees and testing facilities and includes protections for whistleblowers.

In a statement, state Sen. Jeremy Cooney (D), the bill’s sponsor, said the state has made significant strides in building a successful legal cannabis market…but that market can only continue to grow if New Yorkers can trust the source and safety of their products.

“Illegal products are dangerous and unreliable, which is why this bill says enough is enough. It’s time to make sure only legal products hit our shelves, hold bad actors accountable, and maintain the integrity of our legal marketplace.” – Cooney in one press release

The bill would authorize the Office of Cannabis Management to seek suspension orders against licensees or laboratories suspected of diverting cannabis and creates civil penalties of no more than five times the proceeds of the prohibited sale of cannabis.

TG joined Ganjapreneur in 2014 as a news writer and began hosting the Ganjapreneur podcast in 2016. He is based in upstate New York, where he also teaches media at a local university.

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