New York Cannabis Regulators Settle Lawsuit With Michigan Plaintiff, How This Affects Upstate Retailers

The New York Cannabis Control Board has reached a significant settlement in a lawsuit against a Michigan business owner, which would bring positive developments to the state's cannabis industry.

Variscite NY One, Inc., a Michigan-based plaintiff, took legal action after being denied a Conditional Adult-Use Retail Dispensary (CAURD) license by the Office of Cannabis Management (OCM) due to concerns over ownership eligibility. This legal dispute resulted in a restrictive injunction that effectively halted the issuance of CAURD licenses across multiple regions, including the coveted Finger Lakes area.

However, with the settlement awaiting approval from a federal judge, the lifting of the injunction specifically for the Finger Lakes region is imminent.

Reuben McDaniel, a member of the New York Cannabis Control Board and CEO of the Dormitory Authority expressed satisfaction. "I'm very pleased that we're considering this today... not because I think that this lawsuit has any merit, but our CAURD licensees need to be in the Finger Lakes, as well, getting to work."

BREAKING: The state office of cannabis management has agreed to settle its ongoing lawsuit preventing legal sales in the Finger Lakes region. More to come tonight on @News_8.

— Natalie Kucko (@NatalieKucko) May 30, 2023

Additionally, NY Sen. Jeremy Cooney expressed relief and satisfaction with the settlement, emphasizing the importance of ensuring safe and legal access to recreational cannabis for adults in Greater Rochester. He said he is awaiting the announcement of CAURD licensees in the Finger Lakes region and remains committed to supporting entrepreneurs and fostering social equity in the cannabis industry. 

The settlement details remain confidential until it is filed and approved in court later this week. However, it guarantees an adult-use license for Variscite and would enable the full launch of the CAURD licensing program in the Finger Lakes region.

NY Cannabis Industry Developments

In a continued push for progress, the Cannabis Control Board has taken additional measures to bolster the cannabis industry in New York. By modifying the partnership agreement with Social Equity Impact Ventures, the state has opened doors for credit investors to contribute to the cannabis social equity fund, expediting the targeted $150 million fundraising goal.

Addressing the supply chain challenges faced by limited retail outlets, the OCM recently introduced a plan for cannabis farmers' markets set to launch this summer.

While legal battles persist, including a lawsuit demanding immediate licensing for all retail dispensary applicants, the state regulators' commitment to overcoming obstacles and advancing the regulatory framework underscores its dedication to a flourishing cannabis market in the state.

Related News:

Two Years Later And Retailers Are No Closer To Cannabis Licenses In New York State

If New York Lawmakers Were Smart, They'd Race To Get The Legal Weed Market Up And Running, Why Aren't They?

Photo: Courtesy Of Tim Mossholder On Unsplash