Judge Rules NYC Law Closing Thousands Of Cannabis Shops Is Unconstitutional, Opening Door To Major Lawsuits

Zinger Key Points
  • The Judge's decision will allow every store that has been shut down to be reopened immediately.
  • The attorney representing weed shop owners says others targeted in NYC's 'Operation Padlock' could to sue for 'astronomical damages.'

A Queens judge ruled Tuesday afternoon that the state law, which had allowed New York City to padlock hundreds of suspected illicit cannabis shops, is unconstitutional.

Judge Kevin J. Kerrigan ruled that the mandate, which grants the City Sheriff's Office authority to keep illicit cannabis sellers shuttered after they've been raided, violates the store owners' rights to due process.

"Summarily shuttering a business for one year. Despite the fact that it was exonerated from allegations of illegal activity stands against the cornerstone of American democracy and procedural due process," Kerrigan's decision reads.

NYC used the provision to back its aggressive enforcement under Mayor Eric Adams' much-lauded "Operation Padlock to Protect," which was given the green light by Gov. Kathy Hochul. The program gave Adams' task force comprised of the NYPD, Sheriff's Office and the Department of Consumer and Worker Protection the power to padlock stores after just one inspection.

A number of stores closed down were later found to not contain any cannabis on the premises at all, while others were ordered to reopen because sheriff's deputies had either improperly conducted their inspections or they had failed to properly service summonses, noted the NY Post.

Read Also: New York’s Surprise Ban On Cannabis-Caffeine Products Raises Eyebrows In Industry

Reopen Immediately And Sue For Damages

The Judge’s statement adds that the decision will allow every store that has been shut down to be reopened immediately and to sue for damages associated with the closing of the store.

"This decision validates what we have been arguing since this statute was enacted. Mayor Adams, the City Council and the Sheriff have violated the due process rights of every store owner that has been shut down by the NYC Sheriff's office," said attorney Lance Lazzaro, who represented more than 100 shops that were raided. He also predicted that the ruling could enable others targeted in Operation Padlock to sue for "astronomical damages."

"The City of New York should be ashamed for allowing this process to happen in the first place," Lazarro said.

Operation Padlock Goes South Fast

In effect since April 2024, Padlock to Protect was getting bad press by September. Shortly after Mayor Adams was indicted on federal corruption charges, the Department of Investigation opened a probe into NYC's Sheriff Anthony Miranda over accusations that he and his officers made off with cash from the smoke shops they closed down throughout the city.

NYC authorities in Adam's office said the operation had shut down over 1,200 illegal cannabis shops and seized over $82 million in illegal products.

Now Read:

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisGovernmentNewsRegulationsLegalTop StoriesGov Kathy HochulJudge Kevin J. KerriganLance LazzaroMayor Eric AdamsNYC CannabisOperation Padlock to Protect
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.