3 more businesses sue Illinois over unsuccessful marijuana license bids

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Three companies seeking marijuana business licenses are the latest to file suit against Illinois regulators, alleging their applications for cultivation and transportation permits were wrongly rejected or that they weren’t given an opportunity to rectify errors.

According to Law360, the plaintiffs include Prairie State Cannabis, Cannabus and ia GP, all of which filed suit in Cook County Circuit Court last week.

Lawsuits brought by losers in competitive bidding processes have long been the norm in the cannabis industry, and plenty of marijuana licenses in legal U.S. markets across the nation have been won through such lawsuits.

But Illinois has had more than its fair share of litigation over its marijuana licensing process and its social equity program.

For example, when state regulators announced in fall 2020 that only 21 of 900 applicants would be considered for a pool of 75 retail licenses, lawsuits followed.

And when the state announced a new plan to allow applicants to correct errors in their paperwork, even more lawsuits were filed.