New York medical cannabis businesses sue to limit licensees

A majority of New York’s medical marijuana companies are suing to stop the state Department of Health from awarding new licenses, saying the competition could damage an industry that is operating below capacity because of a relatively small patient base.

Four of New York’s five licensed MMJ businesses also claim that the state’s plans to license other operators – possibly as soon as this month – will impair their ability to serve patients, according to a 28-page lawsuit filed by the Medical Cannabis Industry Association (MCIA), the Times-Union reported.

In February, the state health department tapped five additional MMJ businesses to receive licenses, pending final approval: New York Canna Inc.; Fiorello Pharmaceuticals Inc.; Valley Agriceuticals LLC; Citiva Medical LLC; and PalliaTech NY LLC.

The department said it would take a “phased-in approach to ensure their smooth integration into the industry,” adding that it would perform due diligence on the firms.

“The DOH’s premature doubling of the supply market, before patient demand has grown to a level that can sustain even the existing market, will immediately launch the collapse of the medical cannabis industry in New York,” the lawsuit stated.

The MCIA filed the suit on behalf of Bloomfield Industries, Etain, PharmaCann and Vireo Health of New York. The other state-licensed medical cannabis company, Columbia Care, is not part of the lawsuit, according to the Albany newspaper.

The state health department has taken steps to boost the moribund medical marijuana market and boost the patient count.

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6 comments on “New York medical cannabis businesses sue to limit licensees
  1. Bob Dakota on

    It is called competition, if you can’t develop the market who’s fault is that. You want a monoploy which has not and will not work. Instead of sitting on your butt get out there and work to develop the market, marketing 101
    Why should the state bale you out because you don’t know how to run your business. Maybe if you had competition you would actually have to work. Free markets are the only way to insure quality, quanity and access that is needed for qualified patients.

    • Lawrence Goodwin on

      Bob, you clearly do not understand the stigma against growing cannabis plants in the state of New York. Do some research before you go casting those kinds of accusations at people. Despite recent media reports, New York Gov. Andrew Cuomo and his lapdog, Health Commissioner Dr. Howard Zucker, continue exercising their official power to suppress public access to medical cannabis—and such heartless political and bureaucratic interference is precisely what keeps all 5 “legal” growers from making profits (they should be suing the state for that malfeasance, which is depriving safe and effective medical relief to hundreds of thousands). It was Cuomo and Zucker, not the growers, who conspired to devise “no smoking” and “no edibles” rules, as if these two arrogant men know the medicinal compounds inside female cannabis flowers better than 20 million New Yorkers. Simply put, it is Cuomo and Zucker who perpetuate 80 years of “reefer madness,” while committing the whole state to more anti-cannabis repression.

  2. rashakor zyzx on

    This program seems hell bent into failing. By the way, the new licenses are already announced on their website.

    • Doug on

      No, they’re not. Those are just the five runners up, whom DoH has asked for updated financials and other information.

      • Rashakor zyzx on

        I stand corrected. I should have read the whole thing. Insider note; the verification started back in mid 2016. By now most of the runner up are verified, the official announcement should come very shortly unless this suit stops the process.

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