Verano Challenges Alabama Medical Cannabis Commission Over Revoked Business License

LOS ANGELES- Verano, a player in the cannabis industry, has launched a legal battle against the Alabama Medical Cannabis Commission, following the revocation of its business license due to a discrepancy in the application score identified by the commission, as reported by WSFA. The company asserts that the commission overstepped its bounds, a move that has spurred the current lawsuit.

Earlier in June, the commission had granted licenses to Verano Alabama, to which the company responded by promptly paying a licensing fee amounting to $50,000. However, a subsequent revelation of an error in the application scores, as reported by Global Cannabis Times in August, led to the annulment of these licenses and a reassessment of the applications. Despite emerging as the top scorer among the integrated facility applicants, Verano found itself excluded from the list of medical cannabis business license recipients in August, a decision that came even after the company had settled the requisite fee.

James Leventis, the Executive Vice President of Verano, has challenged the commission’s ability to “void” a license, arguing that such a move contradicts Alabama’s existing legal framework. Leventis underscored that the company’s primary mission is to facilitate the provision of essential relief to medical cannabis patients in the state, while also injecting an estimated $40 million into the local industry. Through its lawsuit, Verano is urging the commission to restore the initial license awards.

In the midst of this legal wrangle, the commission finds itself embroiled in another lawsuit, this one pertaining to alleged breaches of Alabama’s Open Meetings Act. As these legal proceedings unfold, the commission has chosen to maintain silence, refraining from issuing comments on the ongoing cases. Leventis mentioned that the lawsuit is still in its nascent stages, with the state yet to formulate a response to Verano’s legal action.

This dispute marks a significant moment in Alabama’s evolving cannabis landscape, highlighting the complexities and challenges that accompany the regulation and licensing of new entrants in the burgeoning medical cannabis sector.