Missouri Cannabis Companies Sue Good Day Farm, Alleging Illegal Market Dominance
Two Missouri-based cannabis wholesalers have filed a lawsuit against Good Day Farm, accusing the company of illegally controlling a significant portion of the state’s cannabis dispensary market. CPC of Missouri – Smithville LLC and GF Saint Mary LLC, both licensed wholesalers, claim that Good Day Farm, an Arkansas-based vertically integrated cannabis company, has built an illegal monopoly in the state’s $1.52 billion cannabis industry.
The lawsuit, filed in Jackson County Circuit Court, targets Good Day Farm and its affiliated companies, which the plaintiffs refer to as the “GDF Cartel.” The complaint alleges that Good Day Farm has acquired at least 61 dispensaries across five brand names, exceeding the 22 allowed under state law. This represents nearly a third of the 224 licensed dispensaries in the state, which would be equivalent to approximately 27% of the market.
Missouri’s Constitution prohibits any entity or group of entities under “substantially common control, ownership, or management” from holding more than 10% of the state’s dispensary licenses. The lawsuit claims that Good Day Farm’s control of over 27% of the market exceeds this threshold, amounting to an illegal stranglehold on the industry.
The plaintiffs are seeking an injunction to stop Good Day Farm’s alleged illegal activities and are seeking damages for the harm caused to their businesses. The lawsuit also seeks to restore competition to the market, which they claim has been stifled by Good Day Farm’s dominance.
