A Michigan company Tuesday dropped its lawsuit challenging Illinois’ plans for authorizing new marijuana businesses, allowing the state to proceed with awarding the licenses.
Sozo Illinois Inc. voluntarily dismissed the suit on the day that advocates for Black and Latino applicants held a news conference Tuesday pleading to end the litigation.
The company issued a statement that it wanted to challenge a “deeply flawed and unconstitutional process” that changed the rules after the applications were scored.
But after hearing from other social equity applicants, and out of concern over further licensing delays, company officials made the “difficult” decision to withdraw.
Chicago NORML Executive Director Edie Moore said social equity advocates were relieved at the outcome and excited that the licenses will be awarded.
“Sozo and their lawsuit was a distraction that showed a complete disregard to people working in the Illinois cannabis industry as social and racial advocates,” she said.
The withdrawal of the suit appears to clear the way for the state to hold the first of three lotteries Thursday. It will match 55 licenses to applicants who scored 85% or better on their applications for recreational cannabis stores.
The licenses have been delayed for more than a year, initially due to issues related to COVID-19, then due to problems with scoring the applications. The scoring, conducted by consultant KPMG, resulted in just 21 applicants achieving perfect, tied scores and qualifying for a tiebreaking lottery.
Unsuccessful applications objected and filed suits, claiming the process was unfair, because identical exhibits were scored differently. Wealthy, clouted, white male applicants won a significant portion of perfect scores, instead of the Black and Latino applicants who were meant to get an advantage as “social equity” applicants from areas hurt by the war on drugs.
In response, state officials decided to rescore the applications. Gov. J.B. Pritzker this month signed into law a measure to hold three lotteries to award the licenses. The second will be held Aug. 5, and the third on Aug. 19.
Sozo Illinois Inc. claims the law unfairly lowered its chances of getting the new licenses. One part of the law gives bonus points in scoring applications from Illinois-based companies, while another removed a bonus for hiring 10 people from areas hurt by the war on drugs — both of which hurt Sozo. The suit sought a court order to stop the lotteries.
The suit cited a pattern of Illinois politics “marred by backroom self-dealing between politically connected and powerful factions that undermines the supposed benefits to the public …”
Pritzker spokeswoman Charity Greene responded with this statement: “As it has been from the very beginning, the top priority for the Pritzker administration remains establishing a legal cannabis industry in Illinois that is equitable and reflects the diversity of communities across the state.”
The state issued a video explaining that the Illinois Lottery will conduct the drawings electronically, with an auditor, using numbers assigned to each applicant to ensure the lottery is done randomly without knowing the identity of the applicants. The Illinois Department of Financial and Professional Regulation will then match the numbers to the applicants and notify them.
![A recent study that found dangerously mislabeled contents of unlicensed hemp products in Illinois, like Delta-8 and Delta-10 THC, is prompting a renewed call for regulation. The study by a University of Illinois Chicago researcher, found that such products “pose a clear danger” and a “huge risk” to consumers. “Without regulations being put in place and then fully enforced, this danger will continue, and more people will be harmed,” wrote former university researcher Jennifer Bash. In response, Ald. Brian Hopkins called for legislation to ban or regulate such products. “This is a completely unregulated, Wild West environment,” he said. The […]](https://www.chicagotribune.com/wp-content/uploads/2024/03/CTC-hemp-farm08_176428205.jpg?w=525 "A recent study that found dangerously mislabeled contents of unlicensed hemp products in Illinois, like Delta-8 and Delta-10 THC, is prompting a renewed call for regulation. The study by a University of Illinois Chicago researcher, found that such products “pose a clear danger” and a “huge risk” to consumers. “Without regulations being put in place and then fully enforced, this danger will continue, and more people will be harmed,” wrote former university researcher Jennifer Bash. In response, Ald. Brian Hopkins called for legislation to ban or regulate such products. “This is a completely unregulated, Wild West environment,” he said. The […]")
![Michelle and Rick Ringold have built a successful partnership–both in marriage and in cannabis. Rick is a U.S. Army veteran and construction contractor. His wife, Michelle, runs an accounting firm. It took all their business know-how and a roughly $10 million investment to win a state license and launch Galaxy Labs LLC, a craft cannabis growing business. But they wanted to be able to both grow and sell their own products. So they negotiated the purchase of a cannabis retail license. Galaxy Dispensary opened Thursday in a strip mall in Richton Park, celebrating with a live DJ, food, and a […]](https://www.chicagotribune.com/wp-content/uploads/2024/02/ctc-l-galaxy-CT0134242068.jpg?w=526 "Michelle and Rick Ringold have built a successful partnership–both in marriage and in cannabis. Rick is a U.S. Army veteran and construction contractor. His wife, Michelle, runs an accounting firm. It took all their business know-how and a roughly $10 million investment to win a state license and launch Galaxy Labs LLC, a craft cannabis growing business. But they wanted to be able to both grow and sell their own products. So they negotiated the purchase of a cannabis retail license. Galaxy Dispensary opened Thursday in a strip mall in Richton Park, celebrating with a live DJ, food, and a […]")