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A national libertarian-leaning nonprofit law firm with a track record of winning at the U.S. Supreme Court has taken command of a lawsuit in New York that alleges government discrimination against white-owned businesses during the states cannabis business licensing.

I can officially say were taking over the case, a spokesperson with the Pacific Legal Foundation told Green Market Report on Monday.

The Pacific Legal Foundation which has won 17 of the 20 cases it argued before the U.S. Supreme Court since 1987 has taken up the plaintiffs cause in Valencia Ag vs. the New York State Office of Cannabis Management et al.

Valencia Ag filed the federal lawsuit in January against New York cannabis regulators, alleging that the social equity-focused rollout of the states recreational marijuana market violates the U.S. Constitutions Equal Protection Clause by giving disfavor to white men, including the owners of Valencia Ag.

The suit targeted goals within the New York state law that include reserving 50% of all cannabis business licenses to specific demographics such as disabled service veterans and women- and minority-owned companies under an umbrella policy of social equity. It argued that provision unfairly disadvantaged businesses owned by white men, such as Valencia Ag.

The firms attorneys are preparing to file an amended complaint in the legal action, hopefully sometime this week, after the firm filed a letter with the New York state court on behalf of Valencia Ag. That letter requested that an earlier preliminary injunction motion be canceled, but that was only so Pacific Legal Foundation could prepare its own such request for an injunction, the spokesperson said.

Pacific Legal Foundation NY Valencia letter

If an injunction is granted by a federal judge, it would mark the third time since late 2022 that the licensing process has been halted in the state, after two other lawsuits that also targeted the social equity framework resulted in out-of-court settlements which allowed marijuana business permitting to resume.

There are also multiple other lawsuits still pending against New York cannabis regulators which are similarly requesting injunctions or regulatory changes to benefit plaintiffs.

Pacific Legal has taken on the case pro bono, which is standard practice for the firm.

This case might seem different for us but government overreach is always a fit for our organization. We fight for what is right, that all people should be treated equally under the law, regardless of race and gender, the spokesperson said.

The firm deferred questions about how the lawsuits legal strategy may change at this point, and said the amended complaint is days away from being filed.

But with a national law firm that has a track record of winning at the U.S. Supreme Court taking the case pro bono, its a good bet the fate of the New York social equity market structure will be in doubt for some time to come.

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Libertarian legal nonprofit takes over New York lawsuit alleging discrimination against white men - Green Market Report