A California marijuana company that brazenly accuses competitors of allowing legal product to be sold on the illicit market might yet succeed in prying loose track-and-trace data from the state that could prove it.
That’s based on an Aug. 2 ruling by California’s 4th Appellate District Court that the state Department of Cannabis Control (DCC) did “not conclusively show” that it “created an electronic database that flags irregularities for further investigation.”
The decision stems from a 2021 action in which Los Angeles-area based HNHPC, the parent firm of Catalyst Cannabis Co., sued the DCC.
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An Orange County trial judge dismissed the lawsuit, but HNHPC then appealed.
Central to the lawsuit are the DCC’s oversight and whether it is “flagging” and subsequently investigating any irregularities found in its track-and-track database that might indicate illicit-market diversion.
Catalyst CEO Elliot Lewis has openly made such accusations against other prominent
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