NY Court Grants Preliminary Injunction, Blocking OCM Directives Threatening 150 Cannabis Businesses

[PRESS RELEASE] – ALBANY, N.Y., Sept. 26, 2025 – The Supreme Court of New York has granted a preliminary injunction that protects more than 150 licensed dispensaries from forced relocation or closure while the case proceeds against the state’s Office of Cannabis Management (OCM). The injunction showcases the validity of the plaintiffs’ case and was issued without prejudice, allowing for it to be renewed after six months.

Signed by Judge Savona, AJSC, the order requires the OCM to revert to its previously established method of calculating distances between dispensaries and schools, as outlined in its March 11, 2024, “Guidance for Adult-Use Retail Dispensaries.” This injunction remains in effect through Feb. 15, 2026, covering both license renewal applications expiring on or before that date and new applications submitted by existing licensees, provisional licensees, or applicants during this period.

“This preliminary injunction is a critical safeguard for more than 150 compliant, tax-paying dispensaries across New York,” said Jorge Luis Vasquez Jr., attorney for the petitioners. “The OCM’s directives would have forced businesses that followed every rule to suddenly uproot or close their doors, jeopardizing investments, leases and community trust. By requiring the OCM to honor its own prior guidance, the court has ensured stability while the broader issues are litigated. Licensed operators deserve regulatory clarity, and we will continue to pursue a resolution that protects equity licensees and delivers on the state’s promise of a fair and sustainable cannabis market.”

The court’s order ensures that licensed, tax-paying businesses, which invested significant resources of time and money, are shielded from directives that would have otherwise forced them to relocate or close, despite their full compliance with all regulations. When the OCM announced its reinterpretation of community-vetted policies regarding proximity, the industry was stunned to see licensed operators’ livelihoods threatened. Nearly 90% of the affected dispensaries are owned by Conditional Adult-Use Retail Dispensary (CAURD) justice-involved individuals, many of whom are Black or Latino.

“The OCM’s recent declaration placed retailers in untenable positions, jeopardizing their access to banking, investment and lease agreements while pushing compliant businesses into noncompliance through no fault of their own,” said Matthew Bernardo, president of Housing Works Inc. “Disrupting operations at this scale not only harms law-abiding businesses but also drives consumers back to the illicit market, where untested products put public health at risk.”

Petitioners in the case include Housing Works Cannabis Co., Conbud, The Cannabis Place, Rezidue, Summit Canna, Hush, High Fade, Elise Pelka LLC, Common Courtesy Dispensary LLC, Toastree LLC, Monarch NYC LLC, and Luxe Leaf Boutique LLC. All are affected dispensaries by the proximity reinterpretation; they collectively filed suit against the OCM on Aug. 15.

“This injunction presents a unique opportunity for Gov. Hochul to lead the legislative solution and resolve this matter in an equitable manner that will save thousands of legal cannabis industry jobs throughout the state, while ensuring access for tested and regulated cannabis products for consumers,” The Cannabis Place dispensary CEO Osbert Orduna said.

Housing Works Cannabis Co. and fellow petitioners remain committed to working toward a fair, workable solution that protects every compliant, tax-paying license holder in New York.