Verano Holdings Files Lawsuit Against Alabama Medical Cannabis Commission

LOS ANGELES — Verano Holdings, a Chicago-based cannabis operator, has filed a lawsuit against the Alabama Medical Cannabis Commission (AMCC) following the revocation of a business license that was initially granted to the company. This move comes less than two weeks after the controversial decision by the agency.

Verano’s legal action marks the second such lawsuit this month challenging the state’s medical cannabis (MMJ) licensing procedures.

Earlier in June, the AMCC had awarded 21 cannabis business licenses. However, the licensing round was subsequently overturned when the agency discovered what it termed “potential inconsistencies” in the license application evaluations conducted by the University of South Alabama.

Verano Alabama, despite securing the “highest score” among the applicants and being granted one of the five coveted vertically integrated licenses, was notably absent from the list during the second license announcement in August. What adds to the intrigue is that Verano was the sole company from the June awardees not to be granted a license in the August round.

According to an August 10 public filing, Verano contends it had “rightfully earned and was awarded a License” and further asserts that the “Commission did not have the authority to void the awards of the Licenses following the June meeting.” The company doubled down on this position in its recently filed complaint.

The lawsuit emphasizes the company’s belief that the AMCC’s decision to annul previously awarded licenses without abiding by both legislative stipulations and its own established regulations was a clear breach of its statutory authority. “Verano Alabama’s awarded license remains valid,” the company asserted in the suit, as per details from the Alabama Reflector.

In a separate yet related development, the state’s licensing procedures were halted by a judicial order last week. This decision was a response to another lawsuit alleging that the AMCC had transgressed open-government laws, as reported by the Reflector.