The lawsuit could lead to the destruction of a $1.5-billion cannabis crop
The new cannabis industry in New York seems to always have new updates. However, the most recent ones are not so positive, as a small court battle could be responsible for destroying a marijuana crop valued at more than $1.5 billion. This could undoubtedly severely hurt a market that is just taking its first steps.
Small farms have just harvested their first cannabis crop in the hope that dispensary licenses would be ready soon. However, a court fight has prevented New York from issuing these permits in some parts of the state. As a result, many of the small farms could be hurt by losing much of the effort they have put in over the past few months.
As many already know, the Empire State issued its first 36 dispensary licenses earlier this week. These stores would be the first and only places in the state where recreational marijuana is legally sold. However, a legal battle over its licensing criteria has caused the state to delay plans to license dozens more dispensaries.
The decision comes from US District Court Judge Gary Sharpe in Albany. The judge has blocked Brooklyn from being an eligible area for this type of licensing, as well as certain parts of upstate New York. The move comes after a company owned by a Michigan resident challenged the requirement that applicants demonstrate “a significant presence in New York state.”
New York appears to disagree, and through a court filing, it has asked the judge to relax that injunction to avoid jeopardizing a marijuana crop worth an estimated $1.5 billion. The crop is ready to be distributed to retailers, but a shortage would mean a huge loss of millions.