ALBANY, N.Y. (WRGB) — A group of cannabis farmers who own small operations in New York State have filed a lawsuit against the state Office of Cannabis Management (OCM), claiming the state’s handling of the recreational cannabis rollout has left them facing financial ruin.
The lawsuit, filed by the Cannabis Farmers Alliance, allege that OCM is not following the laws the state put in place to level the playing field so that small business owners have a fair shot at success.
“It’s breaking these poor people who have invested their lives, life savings, their families life savings and they’re dying,” said Dean DiPilato, the attorney representing the alliance.
The lawsuit was filed in Onondaga County Supreme Court on Monday.
When New York State legalized recreational marijuana, state leaders vowed to build an industry that would prioritize social and economic equity, but DiPilato said that’s currently not happening.
“Now that they are giving out licenses, they’re giving it out willy nilly. They’re not paying attention to the little guy,” said DiPilato. “The farms aren’t going to survive. The health impact on these people have been horrendous, beyond anxiety and depression.”
“They are unlawfully allowing stacking of licenses to allow players a large piece of the farming market to the detriment of these small farmers, and OCM knows it’s happening and done nothing about it,” he added.
The lawsuit is alleging that OCM failed to follow several mandates surrounding “the establishment and monitoring of the cannabis marketplace in New York.”
“We have causes of action to license stacking, related to market manipulation, related to inversion of illicit products into the state, which is really a huge problem,” DiPilato said.
Part of the lawsuit alleges that OCM failed to comply with state mandates when establishing regulations.
“These promises included the implementation of a functioning and affordable Seed to-sale tracking system, market monitoring and stabilization, and a regulatory framework designed to protect licensed operators from unfair competition and market dysfunction,” stated the lawsuit.
The lawsuit is ultimately seeking a declaratory judgment and mandatory injunction from the court requesting that OCM start following a list of statutory obligations the lawsuit claims OCM failed to comply with.
“The way we’re going, we’re going to lose a large number of small market participants including small farmers,” said DiPilato.
H/T: cbs6albany.com
