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.
But Judge Mitchell Hoffman of the 19th Circuit Court of Illinois ruled on Thursday that Medponics had no standing to file suit.
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.