Cannabis entrepreneurs looking to open up shop in Los Angeles are suing the city after finding that the application process for licenses was executed unfairly.
The lawsuit asks a judge to mandate that the city vet each application under a first-come, first-served basis, according to the Los Angeles Times. The lawsuit aims to give everyone "an equal, fair and transparent opportunity" when competing for a license to sell marijuana.
In September, hundreds flooded in with their applications, hoping to be one of the 100 licenses that were expected to be rewarded in the process. Applicants found that some had begun their applications before the 10 am launch time, arguing that the process had been unfairly administered. The licensing process was then put on hold for months.
The city administrative officer said a new report indicated that there was "no evidence of bias or unfairness." Meanwhile, critics noticed that the department had made some applicants aware that they would not be able to access the online system until 10 am, leaving a window for others to begin the process early.
The lawsuit argues that 226 applicants, who were proven to be in the website before the 10 am start time, had an unfair advantage over the others. 14 of these 226 applicants began their application ahead of time.
"Fundamental to any fair race is that the competitors must start at the same time or, at the very least, be given accurate information about when the race will begin. The record demonstrates that this did not occur," the group argues.
The Department of Cannabis Regulation declined to comment.
