New York City beats shuttered illicit marijuana operators in court

New York City’s crackdown on illicit marijuana operators is constitutional, a federal judge has ruled.In his March 21 ruling, U.S.

District Court Judge J.Paul Oetken granted the city’s request for a dismissal of a lawsuit brought by 27 unlicensed cannabis retailers whose store doors were padlocked and inventory seized in May 2024.

ADVERTISEMENT Led by an operator called Moon Rocket, the businesses filed a lawsuit in June 2024 alleging that New York City’s Operation Padlock to Protect violated their due process rights under the 14th Amendment of the U.S.Constitution.

A month later, the unlicensed operators sought an injunction to halt the city’s enforcement, but Oetken denied the request.And then came the latest ruling, in which Oetken determined the plaintiffs failed to state a claim.

Each of the 27 unlicensed business involved in the lawsuit was inspected by New York City sheriffs, who immediately closed the stores after finding and seizing “alleged cannabis and cannabis products,” according to Oetken’s March 21 ruling.The 27 operators then participated in a hearing before an officer with the city’s Office of Administrative Trials and Hearings (OATH) and, in several cases, were allowed to reopen.

ADVERTISEMENT The businesses that weren’t allowed to reopen could still challenge the closures under state law, Oetken noted in his final ruling.“Therefore,” he wrote in part, “the Court concludes that the risk of erroneous deprivation resulting from the current procedure is low.” It’s unclear if the plaintiffs plan to file an appeal.

A New York City spokesperson celebrated the ruling, telling Bronx-based TV station News 12 in a statement that “we are glad to hear that the court upheld what we’ve (known) all along – New York City’s process to (shut down) illegal smoke shops – which threaten New Yorkers’ health, safety, and quality...

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Publisher: Marijuana Business Daily

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