Cannabis Giant Verano Sues Alabama Commission over License Dispute

Verano has initiated legal action against Alabama’s Medical Cannabis Commission after the company had its business license revoked due to an application score discrepancy identified by the commission, reports WSFA. The company alleges that the commission exceeded its authority, prompting this lawsuit.

In June, the commission initially awarded licenses to Verano Alabama, and the company promptly paid a $50,000 licensing fee. However, the commission later identified an error in application scores, Global Cannabis Times reported in August, leading to the voiding of these licenses and a re-evaluation of applications,. Although Verano received the highest score among integrated facility applicants, it did not receive a medical cannabis business license in August, despite having paid the fee.

James Leventis, Verano’s executive VP, contends that the commission lacks the authority to “void” a license, as per Alabama’s legal framework. He emphasizes that their primary goal is to provide much-needed relief to medical cannabis patients and benefit the state by investing approximately $40 million into the industry. Verano’s lawsuit seeks to compel the commission to reinstate the original license awards.

Meanwhile, the commission is concurrently facing another lawsuit related to potential violations of Alabama’s Open Meetings Act. The commission has refrained from commenting on ongoing legal matters. Leventis notes that the case is in its early stages, and the state has yet to respond to their lawsuit.