The Good Day Farm (GDF) Cartel Owns or Controls 3X the Number of Dispensaries Permitted Under MO Constitution, Uses its Market Power to Crush Wholesale Prices
This putative class action lawsuit, filed on behalf of independent wholesalers in the state of Missouri, alleges they have been harmed by a deliberate and coordinated scheme by Good Day Farm (GDF), and the network of companies and investors with which it conspired, to subvert the market for wholesale cannabis in violation of Missouri’s antitrust laws and the Missouri Constitution. With only 224 dispensaries currently licensed in Missouri, the GDF Cartel currently exercises illegal and effective control over at least 61 dispensaries — nearly triple the 22 permitted under the 10% licensing cap in Missouri’s Constitution.
To circumvent the 10% licensing cap and evade regulatory oversight, the GDF Cartel operates under five different brands that should be competitors, but instead have engaged in a concerted effort to manipulate the market for their own gain and the detriment of the Class Members and Missouri’s retail consumers.
The GDF Cartel includes
Good Day Farm
21 Dispensaries
CODES
20 Dispensaries
Greenlight
10 Dispensaries
Fresh Karma
6 Dispensaries
3Fifteen Primo
4 Dispensaries
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.
The lead plaintiffs in this proposed 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 filed on behalf of independent wholesalers who allege that they have been harmed by Good Day Farm’s illegal anticompetitive business practices for purposes of injunctive relief. Wholesalers who believe they have been harmed must join the litigation in order to receive damages. The putative class is represented by the law firms of Feuerstein Kulick LLP and Bryan Cave Leighton Paisner LLP.