Falling property values behind suit targeting Massachusetts medical cannabis dispensary

Falling property values: That’s why a group of businesses say they are suing a neighboring medical marijuana dispensary in Cambridge, Massachusetts.

Boston 25 News reported that Harvard Square business owners claim the cannabis store is driving down property values by millions of dollars.

Healthy Pharms, the Cambridge store, is a medical marijuana shop, but because this case is in federal court, the results could have ramifications for both the medical and recreational cannabis industries.

The original complaint was filed in September, 2017.

Here’s what you need to know:

  • One property owner, Crimson Galleria owner Raj Dhanda, is claiming the MMJ shop has reduced his property’s worth by $27 million.
  • An attorney for the dispensary argues there’s no evidence to back the claim and that Healthy Pharms is operating within the law.
  • Dhanda has banded with other business proprietors to sue Healthy Pharms and nearly a dozen others under the federal Racketeering Influenced and Corrupt Organizations Act, or RICO. If successful, the suit could amount to damages of more than $81 million.
  • This isn’t the first time a cannabis business has been threatened with a RICO lawsuit. A lawsuit in Colorado involving the antiracketeering law is scheduled to go to trial in July.
  • A motion to dismiss the case is pending.
  • Massachusetts’ recreational market is set to begin sales this summer, as early as July 1.
6 comments on “Falling property values behind suit targeting Massachusetts medical cannabis dispensary
  1. Michael Corliss on

    Utterly ridiculous. There is no way in the world that the value of the Crimson Galleria’s market value has declined even one penny. Utter BS. Just a greedy RE owner looking to extort cash because the MMJ dispensary is raking it in, and may possibly have a friend who wants to compete after driving the MMJ owner out of business. Guaranteed!

    Reply
    • Michael Corliss on

      P.S.
      The neighboring property owner is claiming his property declined $27MM and the clinic does even open until 4/30/18.

      Reply
  2. lovingc on

    If the property values have dropped that much something other than cannabis is doing it. In other states the presence of a dispensary raises the value of surrounding properties. This is a scam!

    Reply
    • jimdamiano on

      that’s good let a big dispensary open in its place the powers to be are afraid cbd may actually cure people and cut into pharmas profits its time for pharma to get on board

      Reply
  3. Doc Thorne on

    A frivolous lawsuit, either that or there is some other deeper issue relating to this we are not (yet) being told. However, if property values are in fact effected so dramatically by the mere promise of a retail business opening in the future, then I want to have a serious talk with the Council in my small town.

    Reply

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