A New York court has invalidated the state’s marijuana marketing regulations, narrowing a prior order that struck down nearly all rules for the market a day earlier, in a case filed by cannabis website Leafly Holdings (NASDAQ:LFLY).
New York Supreme Court Justice Kevin Bryant issued the revised ruling on Thursday after the state’s cannabis sellers, and other stakeholders raised concerns about his initial order that tossed a large chunk of NY’s marijuana regulations.
In a lawsuit filed in September against New York’s Office of Cannabis Management (OCM), Leafly (LFLY) has challenged the state rules banning third-party advertising for cannabis retailers.
In his ruling, Judge Bryant sided with the Seattle, Washington-based company, noting that the state’s cannabis marketing regulations banning third-party advertising were “null and void and arbitrary and capricious.”
“There is nothing in the record to establish precisely how OCM developed the regulations, which staff members participated in the process or how they addressed the litany of issues that were raised not only by Petitioners but by other individuals who submitted comments,” he wrote.
“We are reviewing the decision and exploring all possible legal options,” the OCM said in response, according to Politico.
Multi-state operators with cannabis operations in New York include Cresco Labs (OTCQX:CRLBF), Acreage Holdings (OTCQX:ACRDF) (OTCQX:ACRHF), Curaleaf (OTCPK:CURLF), and Green Thumb Industries (OTCQX:GTBIF).