The company behind a popular medical marijuana delivery app that was ordered to cease operating in Los Angeles last December is challenging the city’s MMJ restrictions.
Nestdrop has asked an appeals court to overturn the injunction that prevents it from doing business in Los Angeles, saying that the previous ruling is incorrect because the city’s medical cannabis law doesn’t “explicitly” ban delivery services or apps that help dispensaries facilitate deliveries.
The company is essentially claiming that the city’s reading of Proposition D, the set of MMJ industry rules approved in 2013 by voters, is incorrect. The appeal also argues that Prop D is invalid as a whole and says the injunction is contrary to the new state laws that establish a statewide regulatory system.
If the appeal is successful, it could throw Los Angeles’s medical cannabis industry into regulatory upheaval, but it also could open up more MMJ business opportunities in the city.
The ruling has not kept Nestdrop from doing business outside of Los Angeles – as of April, the company was operating in Oregon, Washington State and seven other cities in California, according to TechCrunch. But Los Angeles is the largest medical cannabis market in the state, so it is an appealing target for Nestdrop.