Cannabis Dispensary Applicants Drop Lawsuit Over Los Angeles’ Licensing Process

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A group of cannabis dispensary applicants plan to drop their lawsuit over Los Angeles’ licensing process after the city agreed to process the next 100 applicants in line for licenses, which could double the number of permits issued during this licensing round, according to a Los Angeles Times report.

The Social Equity Owners and Workers Association and one of its members filed the lawsuit earlier this year to force Los Angeles cannabis regulators to vet all the dispensary applications it received last fall under its first-come, first-serve process, which has been marred by controversy.

When the Department of Cannabis Regulation (DCR) launched its latest licensing round in September to issue 100 additional cannabis retail licenses to social equity applicants, some stakeholders alleged that some applicants gained early access to the online application system while others were locked out due to slow internet speeds.

The licensing process has since underwent an audit, which determined that the DCR took “reasonable and appropriate” steps to ensure fairness.

Regulators have amended the rules for its cannabis licensing process per a settlement agreement with the Social Equity Owners and Workers Association, and City Council approved the changed last week.

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