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Pa. Marijuana Grower Failed to Disclose Probe, Suit Says

September 8, 2017

Law360
By Matt Fair

A medical marijuana company filed suit in Pennsylvania state court on Friday saying that a rival won a lucrative growing and processing permit after failing to tell regulators that several of its affiliates are facing criminal investigation for alleged diversion of cannabis products.

BrightStar Biomedics LLC said that the state’s Department of Health was continuing to allow Vireo Health LLC subsidiary Pennsylvania Medical Solutions LLC to move forward with plans to open a marijuana growing and processing facility despite the fact that officials with a company affiliate in Minnesota had been charged for diverting cannabis oil to another state, and that permits awarded to another affiliate in Maryland had been revoked.

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BrightStar is represented by Mark Sheppard, Michael Witsch, Arianna Goodman and Ernest Holtzheimer of Montgomery McCracken Walker & Rhoads LLP.

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