New York Agrees to Settle Fiore Suit, Cannabis Injunction Lift Eminent

CAURD licensees have been languishing in regulatory limbo.

The New York State Cannabis Control Board agreed on terms to settle two lawsuits challenging aspects of the state’s cannabis rollout, officials said Monday.

The resolution, officially adopted Monday, addresses lawsuits brought in August by Carmine Fiore and his associates, as well as the Coalition for Access to Regulated & Safe Cannabis, both filed in the New York State Supreme Court of Albany County.

The plaintiffs had raised concerns over the administration and implementation of the state’s cannabis laws by the Office of Cannabis Management and its leadership, including Executive Director Chris Alexander and Chairwoman Tremaine Wright.

The board tabled the issue at a Nov. 17 meeting despite already agreeing “in principal” to settle the suits, to the chagrin of licensees languishing in regulatory limbo.

Around 436 professional licensees had business planning halted due to a retail injunction issued under the challenge, according to Wright.

“Licensees throughout the supply chain have similarly been impacted by the delay of the retail rollout,” the chairwoman said in prepared remarks at the board meeting Monday.

She added, “It is also the engine that New York state is relying upon to push product that our cultivators have grown into the marketplace.”

Under the terms of the settlement, which remain mostly confidential, the board has agreed to an undisclosed settlement agreement and stipulation of dismissal for both lawsuits, effectively ending the litigation.

Specifics of the settlement have not been disclosed.

“All parties to litigation need to approve a stipulation of settlement before it can become final, but the terms of the settlement still remain confidential at this stage,” OCM’s general counsel, Linda Baldwin, said during the meeting.

Baldwin added, “In terms of what happens next, there will be communication going out to the CAURD provisional licensees explaining the importance of this step and what to expect.”

According to Baldwin, the plaintiffs will “submit the violations” to the court for review and approval in order for the agreements to become effective. Afterward, the current injunction will be lifted and the CAURD program is expected to move forward.

New York’s adult-use program rollout has seen its fair share of misery over the past year, with analysts and investors excluding it from market coverage lately due to mounting uncertainties.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at adam.jackson@crain.com.


One comment

  • michael g mclaughlin

    November 27, 2023 at 2:27 pm

    Did anybody really think the NY rollout would be smooth? The state of NY still holds the reins of power. They are going to tax everything related to cannabis without mercy, then they will heavily regulate the industry. NY is particularly affected by the black market. Let’s see how that goes.
    Thank you for the article.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.