A Colorado judge has ruled against imposing additional requirements on the state’s cannabis regulator, the Marijuana Enforcement Division (MED), regarding the detection of illicit products sold in licensed marijuana stores. This decision, issued by 2nd Judicial District Judge Jill Dorancy, does not affect an ongoing lawsuit filed in March by Mammoth Farms, Colorado’s largest cannabis cultivator.
Mammoth Farms, along with its CEO Justin Trouard, alleges that the state’s $1.4 billion cannabis market is being compromised by products from the illicit market. They claim that cannabis grown outside of Colorado is being sold through licensed retailers, a practice referred to as ‘inversion.’ According to the lawsuit, Mammoth Farms has identified methods that allow these illicit products to enter the state’s regulated sales channels.
The lawsuit contends that the MED has been ineffective in stopping this alleged ‘blueprint for laundering marijuana’ into the legal market. Mammoth Farms argues that the infusion of synthetic THC from outside the state is disrupting the local distillate market and harming licensed operators who comply with state laws. The lawsuit claims that the MED is also failing to test for methylene chloride, a potentially hazardous chemical used in THC extraction from hemp.
In response to the situation, Mammoth Farms sought a court order to compel the MED to increase testing for synthetic THC products linked to the black market. However, during a hearing on April 30, Judge Dorancy stated that the MED seems to be adhering to its established regulations and declined to mandate additional testing or monitoring measures.
Judge Dorancy highlighted that Mammoth Farms is advocating for improved testing and monitoring practices within the cannabis industry, but maintained that the MED’s existing procedures are being followed. As of May 6, the lawsuit remains active, and the judge has yet to decide on a motion from the state to dismiss the case altogether.
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