New York judge scales back order invaliding state's cannabis regulations (updated)

Leafly Holdings

05/04/2024 24:39

(Updates to include judge's order on Thursday reducing the
expanse of his previous ruling)
    By Diana Novak Jones
       April 4 (Reuters) - A New York state judge late on
Thursday dramatically scaled back his order from the previous
day that had invalidated most of the state's cannabis
regulations in a case challenging rules for advertising
marijuana. 
    New York Supreme Court Justice Kevin Bryant issued an
amended order on Thursday that voided only regulations
pertaining to cannabis marketing. 
    The judge in Albany, New York, on Wednesday had issued a
sweeping order that voided a raft of state regulations put
forward by the New York Office of Cannabis Management governing
the licensing, operation and marketing of cannabis businesses. 
    The judge on Wednesday had criticized the Office of Cannabis
Management and the New York Cannabis Control Board's response to
the lawsuit filed by cannabis website Leafly Holdings  LFLY.O ,
saying they presented no evidence or justification to explain
how the regulations were developed. The amended order did not
change his reasoning for striking down the regulations.
    Leafly had sued over rules that barred dispensaries from
advertising on third-party platforms. 
    A spokesperson for the New York Attorney General's office,
which defended the regulations in court, directed questions on
the ruling to the state Office of Cannabis Management. That
office did not immediately respond to a request for comment
after the amended order was posted on the docket. 
    Leafly in a statement before the amended order was posted
said it is important licensed operators have access to
advertising tools to help them succeed, and that the company
hopes the ruling "ultimately leads to a healthy, stable
adult-use market in the state." 
    Leafly did not immediately respond to a request for comment
after the order was amended.

 (Reporting by Diana Jones; Editing by Leigh Jones, Bill Berkrot
and Tom Hogue)
 ((Diana.Jones2@thomsonreuters.com;))