California ‘burner’ distributor lawsuit underlines why licensed cannabis firms cheat to stay afloat, insiders say

When the CEO of a California marijuana retail chain sued the state in September over so-called “burner distribution licenses,” he focused a spotlight on an issue that many in the state’s cannabis industry are loathe to acknowledge:

Many of the state’s licensed marijuana businesses are bending or breaking the rules – and have been since California’s legal adult-use market launched in 2018 – because there’s so little profit to be had by operating lawfully.

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