RICO lawsuit targets Oklahoma medical cannabis business

What’s the right revenue per square foot? What’s a realistic business outlook for cultivators? Get realistic market forecasts, state by state insights and benchmarks. Preorder the 2023 Factbook. 

An anti-racketeering lawsuit seeks to shut down a licensed medical cannabis company in Oklahoma and multiple associated entities.

According to Law Street Media, Keith and Stephanie Grant filed the lawsuit in U.S. District Court in the Northern District of Oklahoma against Flying Buds Farms and 20 other defendants under the Racketeer Influenced and Corrupt Organizations (RICO) Act.

RICO is a federal law typically used against organized crime.

The Grants allege that the various businesses, which operate primarily on property that abuts theirs, have ruined their home because they can no longer “enjoy” it because of an “unlawful marijuana cultivation and distribution enterprise and a construction zone.”

The lawsuit seeks to close the businesses for good by arguing they’re all federally illegal under the RICO statutes.

Get the MJBizDaily Extraction Buyers Guide, now available.

This free resource offers practical business tips and valuable insights from cannabis extraction professionals to help plan or scale your extraction or processing operation with confidence.

Inside the MJBizDaily Extraction Buyers Guide:
  • In-depth guidance for planning a CBD extraction business
  • Best practices in sourcing solvents + solventless materials
  • Lessons in shopping for extraction/processing equipment
  • Tips for outfitting a facility for psilocybin mushroom extraction
  • And more!

But RICO has been tried previously in several other similar situations across the nation, and those suits typically have not succeeded in shuttering licensed cannabis operations.

However, some RICO lawsuits have led to pricey settlement agreements.