A lawsuit filed by a would-be medical cannabis cultivator in Illinois against a prominent Colorado cannabis executive has been tossed out of court “with prejudice,” meaning the issue cannot be re-litigated.
Medponics Illinois filed the suit after an unsuccessful attempt to land a cultivation license in Illinois.
The suit targeted Kayvan Khalatbari, a longtime staple of the Colorado cannabis industry, and a well-known cannabis consulting firm he co-founded called Denver Relief Consulting.
Medponics claimed that Khalatbari was breaking state law because he had a controlling interest in more than three cultivation operations in Illinois.
Khalatbari has an ownership stake in Cresco Labs – which won three cultivation permits in Illinois, including one in the region that Medponics targeted – and consulted with another company that won a license.
In response to the ruling, Khalatbari called the suit “frivolous” and said it amounted to “sour grapes” from a company that didn’t win a license.
“It’s incredibly gratifying to have the evidence come out and for a court of law to validate that fact,” Khalatbari said.
The suit was one of several filed after the state announced winners of cannabis business licenses.