The Office of Cannabis Management in Minnesota is facing a lawsuit from plaintiffs Cristina Aranguiz and Jodi Connolly, who allege that the state unlawfully denied their applications to participate in the lottery for social equity licenses to operate cannabis businesses. The lawsuit claims that the OCM granted “secret reconsideration” to other applicants while denying Aranguiz and Connolly without explanation. The plaintiffs are seeking to halt the social equity lottery proceedings and reverse the OCM’s decision.
Social equity licenses are meant to prioritize business applications from individuals who have been negatively impacted by marijuana prohibition, veterans, and those living in high-poverty areas. The OCM recently announced that out of 1,817 social equity applicants, 1,169 were rejected, with 182 pre-approvals set to be awarded on Tuesday.
In response to the lawsuit, the OCM accused the plaintiffs of being part of a scheme to use multiple applicants to gain an unfair advantage in the lottery. The OCM stated that the denial of applications was due to some applicants flooding the zone or disguising true investors. The plaintiffs argue that they complied with all requirements and were unfairly denied, with Aranguiz citing a failed disclosure of ownership and control.
The lawsuit also alleges that the OCM offered an appeals process to select applicants, while denying others the same opportunity. Other cannabis lawyers are considering filing lawsuits on behalf of clients who had their applications rejected. The outcome of this legal battle could impact the future of cannabis business opportunities in Minnesota.
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Photo credit minnesotareformer.com
