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Dismiss Close Fortune Cookies and Related Technologies on This Site Please choose whether this site may use cookies or related technologies such as web beacons, pixel tags, and Flash objects (“Cookies”) as described below. You can learn more about how this site uses cookies and related technologies by reading our privacy policy linked below. Accept Reject Privacy Policy Ad Fortune Fortune search Subscribe Now * Rankings * Magazine * Newsletters * Podcasts * Video On Demand * Fortune Live Media * Fortune Connect * Fortune Education * Fortune Well * Fortune Crypto * Fortune Recommends Retail Marijuana VETERANS’ LAWSUIT SHUTS DOWN NEW YORK POT INDUSTRY ON ARGUMENT THAT ONLY DRUG CONVICTS ARE GETTING LICENSES UNLICENSED SELLERS HAVE FLOODED IN TO NEW YORK CITY ESPECIALLY AMID A SLOW ROLLOUT OF LICENSES TO SELL RECREATIONAL MARIJUANA. BY Anthony Izaguirre AND The Associated Press August 08, 2023 1:45 PM EDT A woman smokes a marijuana cigarette at Washington Square Park on April 20, 2023 in New York City. Leonardo Munoz/VIEWpress A New York judge has temporarily blocked the state from issuing retail marijuana licenses after a lawsuit from four veterans who argue that regulators are wrongly prioritizing applicants with drug convictions. Subscribe to unlock this article and get full access to Fortune.com Try for $1 Already a member? Login A New York judge has temporarily blocked the state from issuing retail marijuana licenses after a lawsuit from four veterans who argue that regulators are wrongly prioritizing applicants with drug convictions. New York Supreme Court Justice Kevin Bryant issued the temporary restraining order Monday halting the state from issuing or processing marijuana dispensary licenses. The order is the latest legal setback for the state’s fledgling marijuana market, which has been beset by a slow rollout critics have blamed on a cumbersome process designed to give the first round of licenses to people with prior drug convictions or to certain types of nonprofit groups. The attorney general’s office, in a court filing, has cautioned that halting the program will financially hurt retailers who are spending money to set up shop under provisional licenses. The state is not expected to issue new licenses until at least September when a cannabis regulatory board is set to meet, the attorney general’s office said in a filing last week. Oral arguments in the case are scheduled for Friday in Kingston, New York. The veterans’ lawsuit alleges the state’s Office of Cannabis Management created a licensing system that is at odds with the state’s recreational marijuana law, improperly limiting initial licenses to people with drug convictions rather than a wider category of so-called social equity applicants. The order halting the state’s program comes after regulators voted in May to settle a federal lawsuit that blocked them from issuing licenses in the Finger Lakes region. That suit was filed by a company owned by a Michigan resident who said New York’s licensing system unconstitutionally favors New Yorkers over out-of-state residents. Separately, state regulators last month approved the sale of marijuana at festivals and other events after farmers complained that there aren’t enough legal dispensaries in the state to handle their harvests. As the state’s legal licensing program has stalled, authorities have begun to shut down a glut of illegal marijuana shops that have cropped up as unlicensed sellers move to fill the vacuum. MOST POPULAR IN RETAIL * Retail Big fashion gets bigger as Coach and Kate Spade parent Tapestry splashes out $8.5 billion to buy the Versace, Michael Kors and Jimmy Choo owner August 10, 2023 BY Michelle Chapman AND The Associated Press * -------------------------------------------------------------------------------- * Retail Coach parent buys Versace and Michael Kors owner for $8.5 billion as U.S. big fashion races to catch up with billionaire Bernard Arnault’s European luxury giant LVMH August 10, 2023 BY Paige Hagy * -------------------------------------------------------------------------------- * Retail Veterans’ lawsuit shuts down New York pot industry on argument that only drug convicts are getting licenses August 08, 2023 BY Anthony Izaguirre AND The Associated Press * -------------------------------------------------------------------------------- * Retail It may be time to buy that Rolex. Luxury watch prices are nearing a two-year low now that the pandemic bling bubble is long gone July 31, 2023 BY Paige Hagy Rankings * 40 Under 40 * 100 Best Companies * Fortune 500 * Global 500 * Most Powerful Women * World’s Greatest Leaders * World’s Most Admired Companies * See All Rankings Sections * Finance * Leadership * Success * Tech * Asia * Europe * Environment * Fortune Crypto * Health * Well * Retail * Lifestyle * Politics * Newsletters * Magazine * Features * Commentary * MPW * Conferences * Personal Finance * Recommends Customer Support * Frequently Asked Questions * Customer Service Portal * Privacy Policy * Terms of Use * Single Issues for Purchase * International Print Commercial Services * Fortune Brand Studio * Fortune Analytics * Fortune Conferences * Advertising * Business Development About Us * About Us * Editorial Calendar * Work at Fortune * Behavioral Advertising Notice * Terms and Conditions * Site Map * Facebook * Twitter * Linked * Instagram * Pinterest © 2022 Fortune Media IP Limited. 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