Frequently Asked Questions
1. What is this lawsuit about?
This putative class action lawsuit is filed on behalf of independent wholesalers alleging they have been harmed by a deliberate, coordinated, and unconstitutional scheme by Good Day Farm and the network of companies and investors with which it conspired. The complaint alleges the “GDF Cartel” owns, controls or manages an illegally high share of the state’s cannabis dispensary licenses and uses this market power to manipulate Missouri’s $1.52 billion cannabis market and demand low wholesale prices for its own gain.
2. Who are the plaintiffs in this case?
The lead plaintiffs in this putative class action lawsuit are GF-Saint Mary LLC (d/b/a VIBE Cannabis) and CPC Of Missouri-Smithville LLC (d/b/a Local Cannabis), both Missouri-based and licensed cannabis cultivators and manufacturers. This class action is on behalf of independent wholesalers who allege that they have been harmed by Good Day Farm’s illegal anticompetitive business practices. If your business has been harmed, you may be entitled to significant damages. Please contact us here.
3. What is a class action lawsuit?
A class action lawsuit is a civil case where one or more individuals — known as lead plaintiffs — sue on behalf of a larger, similarly harmed group called the “class.” This typically occurs when many people suffer the same harm as is the case here due to the Cartel’s efforts to artificially deflate the wholesale prices and lock out wholesalers who don’t agree to their illegal demands. The legal team that filed the case represents the entire class – but only with respect to the injunctive relief being sought. If you believe you’ve been financially harmed by the Cartel’s business practices, you can contact us here.
4. What is the 10% limit on cannabis licenses under the Missouri Constitution?
Under the Missouri Constitution, no more than 10% of dispensary licenses can be under “substantially common control, ownership or management.” The same limit applies to cultivation and manufacturing licenses. With only 224 dispensaries currently licensed statewide, cannabis operators may only control 22 dispensary licenses. But the Good Day Farm Cartel currently exercises effective control over at least 61 dispensaries—nearly triple the permitted amount.
5. Who is involved in the Good Day Farm Cartel?
The GDF Cartel operates under five different brand names: Good Day Farm (21 dispensaries), CODES (20 dispensaries), Greenlight (10 dispensaries), Fresh Karma (6 dispensaries), and 3Fifteen Primo (4 dispensaries).
6. What specific anticompetitive business practices is Good Day Farm and the GDF Cartel utilizing?
Specifically:
- Non-Cartel wholesalers are forced to sell products to dispensaries below fair market value;
- The Cartel boycotts non-Cartel wholesalers that refuse to meet its pricing or other demands, locking these independent wholesalers out of a substantial portion of the market;
- The Cartel stocks their 61 dispensaries with substantially the same products, primarily those produced by the Cartel;
- Non-Cartel wholesalers with their own dispensaries are compelled to purchase the GDF Cartel’s finished products as a condition of getting their own products onto the Cartel’s retail shelves.
7. Can other manufacturers and distributors join this litigation?
Yes, Missouri-licensed cannabis companies who have experienced these anticompetitive business practices can and should join the litigation, as they may be entitled to significant damages. Please click here to contact the legal team.