Medical marijuana industry sue state

Four of New York’s five medical marijuana companies have filed a lawsuit against the State Health Department in an attempt to stop the state from issuing license to additional cannabis operators by the end of June this year.
The lawsuit which was filed by the Medical Cannabis Industry Association NY was reported on Friday by the Times Union, Albany. According to MCIA, the association filed the lawsuit on behalf of four out of five companies in the industry. The companies involved in the lawsuits are Pharmacannis, Vireo Health, Bloomsfield and Etain. Columbia Care did not part take in the complaint.
The cannabis companies claim that the expansion will have devastating consequences for the nascent industry presently carrying out its operation in the state, and it may cause potential harm to both its workforce and its patients who depend on their medical marijuana products and services. The association asserts the DOH is completely overstepping its authority which was delegated to it by the Compassionate Care Act in 2014.
Assemblyman Richard Gottfried, D-Manthattan, who was the sponsor of the Law, challenged the claim “The law does not permanently limit the statutory right of the program to five licensed organizations. It authorized the Commissioner to register five organizations initially, but it also permits the Commissioner to register additional organizations in future.” He said.
According to a comment from the Association, “The medical marijuana industry is still on a fragile foundation; the DOH’s plan to prematurely increase the number of suppliers by issuing license to additional companies will certainly bring the industry to a sudden andignobleend”.
“The companies in the industry invested over $50 million to finance their businesses, and they are yet to break-even due to insufficient demand. The absence of insurance coverage for the cannabis has made it expensive for many patients in NY”. The association stated.
However, the state health department announced it is very much committed in expanding the industry. The Department responded in a statement “From the beginning, our commitment to the growth of the program was made crystal clear, so that the New York citizens who qualify for the therapy can easily access it. We will continue to stand against any attempts to prevent patients from the relief they deserve to get”.