A partial settlement has been reached in a massive lawsuit filed by marijuana licensees and would-be licensees who claim the state of Nevada unfairly granted the bulk of licenses to a few operators.
The settlement, which calls for multiple license holders to share the wealth with those who were left out of the process, is being challenged by some of the plaintiffs who say they were shut out of negotiations in an effort to derail their cases. They’re alleging collusion and asking Judge Elizabeth Gonzalez to temporarily prevent the Nevada Tax Commission from approving the proposal on Friday.
A hearing on the motion is also scheduled for Friday morning.
A provision in the settlement supports their contention, noting those who settle will join the state in defending the lawsuit.
Attorney Amy Sugden says she intends to challenge the Tax Commission’s jurisdiction over the settlement, given the Cannabis Control Board now regulates the industry.
Despite the proposed settlement, the massive trial continues. It is being held at the Las Vegas Convention Center in an effort to provide social distancing because of Covid-19.
The settlement calls for a shuffling of the following licenses:
- Lone Mountain to assign a City of Las Vegas conditional license to Qualcan
- Lone Mountain to assign a Washoe County – City of Reno conditional license, a Lincoln County conditional license, an Esmerelda conditional license, and a Eureka County conditional license to ETW Plaintiffs
- Helping Hands to assign a Clark County conditional license to LivFree
- Nevada Organic Remedies (The Source) to assign a Clark County conditional license to MM Development (Planet 13)
- Nevada Organic Remedies (The Source) to assign a Carson City conditional license to Qualcan
- GreenMart to assign a Clark County conditional license to Nevada Wellness Center
- Thrive to assign a Clark County – City of Henderson conditional license to ETW Management or a related-entity designee
- Lone Mountain to assign a Douglas County conditional license to Thrive
The state also agrees to issue a Henderson license to LivFree.